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Cereal Aisle Analysis

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Environmental analysis of the global steel industry The environmental analysis of the industry involves the identification and explanation of the environmental factors and variables which affects the industry as a whole. It involves carrying out the SWOT analysis of the industry. Therefore in this paper I will analyse two major environmental variables evident in the Severstal steel industry which include opportunities and threats. The main core competitors for the severstal steel companies are the international steel players such as china, South Korea and many others. Other competitors in the industry include the Arcelor Mittal who is the largest producer of steel, Larkish Mittal who is also a chief producer of steel are the main chief competitors of Severtal group steel company. The main threats which have been experienced by the Severstal groups steel companies are numerous and they include the existence of huge demand variations in the regional markets making planning hectic. There is also threat to entry to these lucrative markets by international steel players. The industry is also fragmented despite many mergers it has formed with others. The industry concentration has also been a major cause of rivalry in the steel industry causing many threats to Severstal steel companies. Despite the enormous threats and the market rivalry in the market, the Severstal steel companies have experienced many opportunities which include, the upcoming markets of Africa, Middle East and Asia which are importing steel enabling them to have a large variety of market. The presences of foreign direct investment into the industry and opportunities have facilitated the growth of these industries. The rapid growth of economies of china, Eastern Europe, Russia and South America also provided the wider market hence opportunities for expansion of the production volumes.

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