Report on Economic, Market and Industry Analysis of the USA

        The steel plan of president is even more attractive that due to the domestic production, steel will be cheaper in future. With scale’s economies in consideration, the production’s cost will decrease with the increase in domestic production rises. It means that rates of steel will lower and the Americans will be able to purchase steel at low costs. Sure, some time will be needed but the scale’s economies will make steel cheaper. Any good’s rising price should be opposed and must be concerned. But despite the rise in steel’s prices, the policy should not be opposed as the rise in prices is not going to last long. If the production of steel is brought back to US, preparation of war will be good, national sovereignty will be ensures, and more jobs will be released (Kapur 2018).

Competition Analysis / Porter Five Forces on Economic, Market and Industry Analysis of the USA

Threat of New Entrants: the threats of new entrants is low in US Steel and Iron Industryinnovation is brought by new entrants in Steel & Iron, along with new ways of doing businessthat put pressure on Steel Corporation of US through reducing costs,lower pricing strategy, and providing new value propositions to customers. All of these require high investment so the threats of new entrants are low in US Steel and Iron Industry (Hill and Jones 2009).

Bargaining Power of Suppliers: the bargaining power of suppliers is high in US Steel and Iron Industry. Almost all Steel & Iron companies in US buy their raw material from several suppliers. In dominant position,suppliers can decrease the margins that United States Steel Corporation can earn. The overall higher supplier bargaining power’simpact is that it lowers the overall Steel & Iron’sprofitability (Hill and Jones 2009).

Bargaining Power of Buyers: the bargaining power of buyers is low in US Steel and Iron Industry.Buyers want to buy the best availableofferings by paying as low price as possible.The integrated and cartel based steel and iron industry of US leaves a small room for negotiation for buyers (Hill and Jones 2009).

Threat from Substitute Products: Threats from substitute products are high due to the homogenous products of the US steel and iron industry.Industry profitability suffersas the steel and iron products meet similar customer demands in different ways. This threat is high in the US steeland iron industry as it offers a homogenous value proposition in the industry (Hill and Jones 2009).

Rivalry among the existing players: Rivalry among the existing players is higher in steel and iron industry of US because of industry trends and similar clientage. United States Steel & Iron industry operates in a very competitive environment. This competition takes toll on the overall industry profitabilityin the long term (Hill and Jones 2009).

Past Trend and Forecasted Price on Economic, Market and Industry Analysis of the USA

        Compared to the American steel industry, no industry was more powerful with the ending of World War II. However past sixty years, many troubles have been faced by the industry. The decline has been steady, it is not as competitive, and to the US economy, it is a far away from being central. Right when the war ended, steel’s global need had risen tremendously. The mills that were purchased by other foreigners were destroyed by bombs. In Asia and Europe, cities required rebuilding and cities in America were growing with a steady speed rapidly. The rate of production of steel was quite high in American steel mills. During 1940 to 1950, approximately forty percent steel of the whole world was being produced. From 1948 to almost ten years, close seven hundred thousand workers were employed by American steel mills. At present in steel mills of the nation, there are only eighty-three thousand (Isidore 2018).

        The need of steel is expected by the world steel’s industry association. Economic health’s gauge is seen as a 900 hundred billion dollars industry and it will grow by 1.4 percent the upcoming year. It will rise to 3.9 percent more this year. The figures will only rise by 2020 even without a proper forecasting. Considering the side of supply to 2020, the capacity of steelmaking supply could increase by almost fifty-two to ninety-one millions of tone. They could also increase by two to 3.4 percent. Each year, the growth is one percent which is told Organization for Economic Cooperation and Development (Reuters 2018)