Business Case Studies, Industry Analysis Case Study, Mittal’s ,Capacity Expansion or Vertical Integration

print page
Tell A Friend

Case Categories

Share |

Industry Analysis Case Study

Case Title:

Mittal’s New Move: Capacity Expansion or Vertical Integration

Publication Year : 2006

Authors: Abhijit Sinha, Kumar Satyaki Ray

Industry: Minerals, Metals and Mining


Case Code: INA0080K

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

In October 2005, Mittal Steel, the world’s largest steel company, made a bid for KryvorizhStal Steel, the largest steel company of Ukraine. In the era, when consolidation and acquisition were common practices in the industry, Mittal Steel’s new move would help it to consolidate its presence more aggressively. The acquisition was a key acquisition for Mittal Steel in Central Europe, as it provided the company with a large size low cost platform in a core and fast growing market. It also helped Mittal Steel to exercise control on the large iron ore reserves of the Ukrainian Steel major, which it planned to use in its expansion programme. In the steel industry, due to raw material shortage, the ownership of mines and long-term alliances with the raw material suppliers became a critical success factor for any company. The case study offers a scope for discussing the rationale of the acquisition in the recent global trends, the value chain of the industry and how Mittal Steel plans to leverage it. Students can also discuss how Mittal Steel can leverage the acquisition by strengthening its position in Central and Eastern Europe and areas close to China

Pedagogical Objectives:

  • To discuss the trends, patterns of global steel industry and consolidation as a major strategy in fragmented steel industry globally
  • To discuss acquisition of KryvorizhStal Steel, the largest steel company of Ukraine by Mittal Steel, potential synergies and problems associated with the acquisition
  • To discuss how acquisitions as a growth strategy help companies to consolidate in fragmented steel industry
  • To discuss the concept of ‘forward integration’ and ‘backward integration’ in steel industry
  • To discuss how alliance with raw material suppliers and ownership of mines help steel companies to have better control over the value chain of the industry
  • To discuss value chain of the steel industry and steel making process

Keywords : Mittal Steel; Arcelor; Kryvorizhstal steel; Industry Analysis Case Study; Consolidation; Acquisition; Vertical integration; Forward integration; Raw material; Long term alliance; Business strategy; Gazprom; Direct reduced iron; Electric arc furnace; Oil and exploration; Posco

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020 - 25 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap