Abstract
M.B.A.
Over the past two years the international steel industry amply demonstrated just how
precarious the business can be. Several steel companies fell by the way. Protectionism
increased dramatically. Anti-dumping actions and unfair trade accusations were
instigated at a level not previously seen. Any concept of the value of steel became
blurred and in the near future, analysis predict, it is difficult to see much in the way of
relief.
To ensure its survival in these harsh conditions, the South African steel industry will be
forced to look beyond its traditional markets and seek strategies to become more
competitive.
The objective of this research project is to determine the key strategic factors that lead
to the successful global competitiveness of an organisation in the South African
steelmaking industry. The literature survey revealed the trend among many of the
global leaders in the steel industry. The literature also included Porter's research on
competitive advantage and other authors strategies, which are considered as key
factors in influencing global competitiveness.
The analysis of the survey among the South African steelmakers revealed a picture of a
fragmented industry. The majority of steelmakers were identified as been well out of
step with the global trend and the issues identified in the literature.
The research highlighted that in order for South African steelmakers to achieve global
competitiveness there is a need for consolidation and strategic alliances in the industry.
It was also recognised that organisations need to develop, exploit and lever their
technologies, competitive advantages, core-competencies and their strategies, in
creating a globally competitive organisation. Managing the linkages between these
various strategies was revealed as key to achieving a unique global competitive
advantage.