Key strategic factors contributing to global competitiveness of the South African steel industry

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