The impact of minimill technology on the profitability of the steel industry.

Question

The costs of producing steel have declined substantially from building a conventional hot-rolled steel mill down to the new minimill technology that requires only scrap metal, an electric furnace, and 300 workers rather than iron ore raw materials, enormous blast furnaces, rolling mills, reheating furnaces, and thousands of workers. What effect on the potential industry profitability would Porter’s Five Forces framework suggest this new technology had? Why?

Answer 1

Question

Chapter 10, Problem 3E

To determine

To describe: The impact of minimill technology on the profitability of the steel industry.

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