The steel industry has evolved from a mostly domestic, monopolistic, and national-prestige industry to a global industry with tough competition across borders. It is mainly due to that the changes in external environments of the industry such as the end of the Cold War and rapid progress in informational technology do not allow it remain as being in the past. As a result, the Korean steel making companies are facing an increasingly difficult task to meet the challenges from the less developed countries, and at the same time to directly compete against the more advanced countries such as Japan.
The primary objective of this study is to provide the Korean steel makers with an adequate guidance for forging a globalization strategy. It consists of the three main parts.
(1) Analyzing the current situation of the world steel industry with a focus on the Japanese steel makers, and their globalization strategy. In addition, that of the Korean steel industry
(2) Conducting an in-depth case study on the globalization history and strategy of NSC(Nippon Steel Corporation)as the benchmark for the Korean steel industry.
(3) Based on the analysis and case study, suggesting a globalization strategy that could enable the Korean steel companies to choose appropriate business domain and dynamics of geographic expansion.
The outcomes of the research suggest that the Korean steel makers should put much emphasis on the following.
(1) To strengthen the partnership with the existing iron ore and cokes supplies and actively investigating investment to the developing new ore and cokes mines.
(2) To establish markets in China, Japan, United States, South East Asia as the four main market and try to export high value added and competitive advantage products such as cold rolled products under market based sales strategy.
(3) To put a priority in the foreign direct investment according to the amount of value creation.
As a leader of the world steel industry, to play a major role in providing low-level steel making technology to the developing nations as a means to cultivate the future market, and to develop new technology by conducting research independently and/or as a joint effort.
