Do you think Caperer should sign the proposal? Why or why not? Mans. I think Caperer should not sign the proposal. My recommendation is based on understanding the basic nature of disruptive technologies, and their future impact on the steel industry. Caperer is currently making the decision based on short- term gains. With this proposal US will have 2. MM ton capacity which 3 times greater than Nuncio’s 0. 8 M ton but the conventional method is not sustainable on a long term basis. SSP technology currently does not fit in Sprayer’s upgrade of the Moon Valley Lana due to physical locations, feasibility, quality and other factors.
But the SSP technology has shown improvement and with more R&D, SSP will surpass the conventional technology in the future. Capital costs were going to lowered from $1000 to $300 which would decrease Use’s costs in the future and hence increase profits. Instead of combining the plan of adoption of SSP and upgrade of the Moon Valley plant, US should think about investing in SSP technology separately and not upgrade their Moon Valley plant. Q. What position should US take with respect to SSP technology? Should it invest in a Greenfield SSP-based plant? Acquire a mint-mill? Invest in R on SSP technology? Something else?
I think US should invest in R on SSP technology. The main problems for implementing the SSP technology at US plants are: 1) Capacity for SSP technology plants is lower than conventional US plants. 2) Conventional plant structure is different to the structure required for SSP technology. 3) The product quality is not equivalent to the current quality of conventional plants. US should stay competitive in the market in terms of quantity and quality, but they should also invest in a long term sustainable. US should go ahead with forming a Joint venture tit an existing minimal using the SSP technology for improving the technology.
I think if US invest in a SSP based plant, they will face labor related problem, which will be expensive. Acquiring minimal is an option but US are traditionally know to run huge plants, so the current management will not be aware of the logistics for operating the plant. If US invested in the R, they will be always behind Incur. So I believe with a Joint venture they could understand about the technology and quicken the pace of R development. Q. Explain why Incur and the other minimalism succeeded in competition against US. Make sure to explain how the minimalism used Use’s strategy to their advantage. Mans. Casting industry By geology_721 technology