Affiliations: Opus College of Business, University of St. Thomas,
Mail # TMH 343, 1000 LaSalle Avenue, Minneapolis, MN 55403-2005, USA | Carlson School of Management, University of Minnesota,
MN, USA | EcoLab, St. Paul, MN, USA
Abstract: This paper takes a systems perspective in exploring and analyzing
optimization possibilities and market dynamics of the global steel industry. To
assess and improve this industry's performance, two analytical approaches are
used. First, a multiple regression analysis was applied to determine the
important relationships among world crude steel producers, international
trading blocs and key countries to quantify the historical correlations in the
steel industry. Next, game theory models are applied to study global steel
industry dynamics and to quantify and compare historical production data in
order to determine optimal approaches that could be employed to gain market
share by key countries and players. In order to gain an in-depth understanding
of interplay among various system's players within this complex global steel
industry, the paper discusses protectionism, quotas, tariffs, exports, imports,
capacity, substitution, specialization, mergers and cooperation, among other
strategies used historically within the industry. A geographical survey of the
global steel industry data is presented in multiple chart formats. Strengths,
weaknesses, opportunities and threats to the industry players are compared.
Implications of the analytical findings for the US, European, and Asian
competitors in the global steel industry are outlined and recommendations that
would lead to optimization of global steel industry operations are
suggested.
Keywords: Steel industry, systems thinking, game theory, systems management strategies, multiple regression analysis, China, exports, imports, production, forecasts, SWOT analysis, Co-opetition, Porter, Nash equilibrium
