Nucor has generated a position for itself within the steel industry as a cost leader. Nucor has created this position by focusing on a "mini-mill" strategy, which has given it a cost advantage over the older, larger, integrated steel firms such as USS and Bethlehem Steel. By being a mini-mill, Nucor has used diseconomies of scale imbedded in the integrated steel structure to be competitive on a price basis.
Beyond the diseconomies of scale, some of Nucor's pricing prowess is also based on a learning-curve economies specific to mini-mill processes and also technological processes developed by the mini-mill industry.
Nucor organizes its management structure to focus on its cost leadership position, which means it has a very flat reporting structure, focuses on cost-cutting initiatives and strongly encourages managers and employees to contribute to the companies low-cost processes.
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