Manufacturing of heavy equipment Competitive Strategy Master of business administration

Manufacturing and Steel Industry


Manufacturing of heavy equipment Competitive Strategy In this to be explained in the report that type of industries is using different theories so as to bring different changes in the industries and to develop the industries. The two industries are manufacturing and steel industry. These two industries are the largest industries in the world which earn millions of profits every year. Two companies in these industries adapt the three theories and look differently in manufacturing its product and services. The two industries adapt the new technology, communicate with the customers and target market and also spread the information at large. Furthermore detail information is being provided to these industries and companies.


This is to be summarized that earlier the two industries Manufacturing and Steel were using old methods to earn profits. They try to make the place in the market but, fails due to the wrong decisions are taken by them. With the result of wrong decisions, the companies had to face losses and somehow the value was being gone down. By taking corrective measures and by working the loopholes in the company the decisions were found to be effective and profit is to be made.

Adaptation strategy

Manufacturing of heavy equipment Competitive Strategy Adaptation strategy is some of the strategies which help a company to make changes in manufacturing and steel industry (Pal, 2013). This adaptation can be in climate, product, and marketing or in many fields in the company. Below all the adaptation strategies are being explained in both the industry:

Manufacturing industry:The manufacturing industry is the first and industry in which the product and services are being made (Dingli, 2012). All the products are being made according to the preference and choice of the customers and to meet the demand and supply also. In manufacturing industries, two companies are being been being taken who has conducted the research and implemented the adaptation strategy (Ademola, 2012).

  1. King living: King living is the top most manufacturing company of the Australia who manufactures sofas, beds, bedroom furniture, chairs, dining, armchair, outdoor furniture etc. (Dingli, 2012). This company is famous for providing good handicraft quality in furniture (Ademola, 2012). This company has conducts the research in the field of marketing, product, and climate so that necessary changes can be made. In research, it is found that in themarket it is to be noted the changes has to be made so that the new innovations can be done. As in the furniture products, the customers want more comfort so the products can be made with more ease out so that they the customers can be made more loyal towards the brand. The product can be made according to the climate.
  2. Austal ships: In Austal ships, the ships are being manufactured according to the customer’s requirement and climate. As ships are being made huge and large according to the brand name to provide more comfort to the customers who comes totravelling to distant places. Here the market and climate play a vital role in adapting strategy. In shipping, different changes have to be made so that the risk related to the climate has to be reduced (Bloom, 2014). Moreover, the ship has to be made such that it can provide more comfort and relax to the customers who travel in the ship.

Steel industry: The steel industry is also the biggest industry which helps in providing good quality of steel all over the world. The steel industry provides steel to  construct the buildings, hotels, tower, bridges and other things (Pal, 2013). Below two companies of steel are being explained which has executed the adaptive strategy.

Arrium: Arrium is the largest steel company which manufactures good quality of steel and do minings. Arrium did the research in the market about the quality if the steel manufactured by them (Pal, 2013). This is to be concluded that the steel cost is getting high and the quality is getting low. So, improvement is to be needed. Moreover, the climate is making abad impact on steel which affectsconstructing of the structure (David, et. al, 2010). The steel must be made such that frequently changing environment does not negatively affect the quality of the steel. It is to be concluded with the results of the research that the Arrium need arestructuring of the company to make the product more valuable and qualitative (Pal, 2013).

BlueScope: BlueScope is the company is the supplies steel in the large amount all over the world. When market research is being done it is being found that the quality of the steel is agod but somehow it is being decreasing day by day along with the demand and supply of the steel (Pal, 2013). The climate is the factor which cannot be changed but precautions can be taken to improve the quality of the steel. This can bring the customers back and more customers can be attracted towards it.




Aggregation strategy

This is the strategy made by the companies to low the cost of the resources and sell the product globally at low cost. So, this strategy is being implemented by different companies which are explained below:

King living: The king living company assemble the different resources from different places at low cost and at good quality. Later it completes the process by fixing the things with the help of big machines and labour. The wages provided to the Labour is less which keeps the cost of the product low. As the furniture has to be made comfortable as the requirements and preference of the customers.

Austral ships: Manufacturing of heavy equipment Competitive Strategy in this company in making the large and huge ship the owner and the managers needs more amount of labour to assemble and manufacture the parts of the ship with different resources. These resources are to be purchased at low cost. After the purchase, the parts are to be given shape according to the structure or blueprint of the ship. This can cost more time and money. Here the wastage of the resources can be more and the labour can cost more so. This has to be reduced to make the product cost a bit low to be purchased by the customers.

Arrium: In Arrium the steel quality must be good so that it can be purchased by the big customers and the product value must be maintained to make the brand name in the market (Pal, 2013). The advantage of the cost has to be taken as to make the product purchased by the customers.

BlueScope: In this company, the steel quality to being good to take the competitive advantages (Pal, 2013). The company uses the strategies which can reduce the cost of the product but the quality is being maintained. This can leads to the profit to the organization.



Arbitrage strategy

In this strategy, the market is being exploited and the profit is being earned. The prices are being kept such the product can be sold at good prices according to the budget of the people living in that area.

King Living:The king living uses the strategy as making purchasing the raw material at low cost and sellingit at high prices. The product is being sold at the places where people can pay higher prices for the low-price product. The quality is being kept stable.

Austral ships:In Austral Ship Company, the culture is being taken as animportant factor which can influence the market and the customers to buy the product at reasonable price. The market must be selected as such that it cannot play anegative impact on the product advertising and sell the product in the market. As the package is being sold to travel on the ship so the target market will be rich people and the people will be chosen as who travels long distance.

Arrium: This company is famous for mining and steel (Pal, 2013). The advantage is being taken from the competitor. The prices are being kepthigh at first by maintaining the quality of the product so that the customers can be attracted. The customers buy the product at high prices so that the cost of the manufacturing is being returned back. (Dingli, 2012) Later on, the prices are being set low to retain the customers and make them loyal towards the product (Ademola, 2012).

BlueScope:In BlueScope Company, the strategies are being made so that the decisions related to the selling of product and services. The area for selling the product and services is to be decided so that the profit can be made. The strategy is being made with the high price to capture the market.

Gap analysis

Gap analysis is the analysis of the outcome and the planned outcome which was made before starting the plan (Tsai, et. al,  2011). The measurement can be done on the basis of the resources which are present with the company. It is to be analysed that the whether the company is using the full utilization of the resources.The value is being seen according to the cost of purchase and sold. The gap is being analysed that the so according to the planned structure and the current resources because of no organization rake full use of the resources (Bunse, et. al, 2011). So, every time the outcome comes to be negative and low as expected to be planned outcome.

Under the theory of AAA, the companies are using different strategies to earn more profit and capture the market. So, the strategies must be made such which can utilize the resources at its full potential and no wastage must be there. Though the prices are being set so that the profit can be made but the value of quality is being decreasedthe prices of the product also decrease. The quality and the quantity of the product become less which affects the planned structure and the gap occurs between the planned outcome and actual outcome (David, et. al, 2010).

To fill the gap the resources and the factors have to be considered so that the reason for theoccurrence of the gap can be made and thegap can be filled with the correction of the factors creating agap (Tsai, et. al, 2011). These factors can be climate, taste, and preference of the customers, marketing, competition, strategies etc. things. These changes have to be read and understand properly through the help of research so that the companies can get the actual outcome as same as planned. This analysis also helps in achieving the goals of the company and makes the planned outcome again (Bunse, et. al, 2011).




This is to be recommended that the Manufacturing and Steel industry has to adopt different methods and techniques so that more profit is be earned and risk can be eliminated in order to grow the industries and business. Improvements are to be done so that the industry and business can grow and develop. Various recommendations are to be given so that the companies can earn more profits. These recommendations are being given below:

As in the manufacturing industry is purchasing the raw material from other sources, this raw material is to be taken at low cost and to be sold at high cost so that the profit margin can be set high, but the quality is not to be compromised at any cost.

At the time of mining, the employees must be provided with all the safety tools so that the raw material must become out safely and no harm is to be made to the workers.

Moreover, in every company decisions related to the climate, market and the product is to be taken care to make the profit.




This is to be concluded that these industries are affected by the different types of risks and climate changes. The industries took necessary steps to decrease the negative effect of risk and increase the profit. The manufacturing industry needs to take necessary steps which are essential in making the industries more developed and helps in making the companies earning more profit. Whereas the steel industry helps in spreading the information at large by different types of methods to the large group of people. Thus, industries have to take care of the process and trends of the market so that they can help the economy to grow along with the business.




  1. Ademola, I.S., 2012. Government Expenditure in the Manufacturing Sector and Economic Growth in Nigeria 1981–2010. International.
  2. Amaefule, K.C., 2011. Improving energy efficiency in the steel industry through scrap recycling.
  3. Bloom, N., 2014. Fluctuations in uncertainty.The Journal of Economic Perspectives28(2), pp.153-175. Mohanty, M.K. and Gahan, P., 2012.
  4. Bunse, K., Vodicka, M., Schönsleben, P., Brülhart, M. and Ernst, F.O., 2011. Integrating energy efficiency performance in production management–gap analysis between industrial needs and scientific literature.Journal of Cleaner Production19(6), pp.667-679.
  5. Buyer supplier relationship in manufacturing industry-findings from Indian manufacturing sector.Business Intelligence Journal5(2), pp.319-333.
  6. David, O., Umeh, J.C. and Ameh, A.A., 2010. The effect of exchange rate fluctuations on the Nigerian manufacturing sector.African journal of business management4(14), p.2994.
  7. Dingli, D.J., 2012. The manufacturing industry–Coping with challenges.
  8. Pal, S., 2013. A Study on Financial Distress in Indian Steel Industry under Globalization.IOSR Journal of Business and Management. 14 (2), 49-53. Retrieved from http://iosrjournals. org/iosr-jbm/papers/Vol14-issue2/G014249 53. pdf.
  9. Taylor, R.G., Scanlon, B., Döll, P., Rodell, M., Van Beek, R., Wada, Y., Longuevergne, L., Leblanc, M., Famiglietti, J.S., Edmunds, M. and Konikow, L., 2013. Ground water and climate change.Nature Climate Change3(4), pp.322-329.
  10. Tripathi, P. and Ranjan, J., 2010. A Competency Mapping for Educational Institution: Expert System Approach. J. of Computer and Communication Technology2(1), pp.75-93.
  11. Tsai, W.H., Hsu, W. and Chou, W.C., 2011. A gap analysis model for improving airport service quality.Total Quality Management & Business Excellence22(10), pp.1025-1040.
I agree to have my personal information transfered to MailChimp ( more information )
Sign up to receive email updates on latest trading strategies , analysis & financial market updates
We hate spam. Your email address will not be sold or shared with anyone else.We Respect Your Privacy

Add a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.