Mike Bolden » Industrial Branding http://www.mikebolden.com Blue Ocean Strategy Sat, 14 Feb 2009 17:02:36 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 The Ultimate Blue Ocean Strategy; U.S. Steel Needs To “Decommodize” Steel http://www.mikebolden.com/blue-ocean-strategy-and-my-consulting/the-ultimate-blue-ocean-strategy-us-steel-needs-to-%e2%80%9cdecommodize%e2%80%9d-steel http://www.mikebolden.com/blue-ocean-strategy-and-my-consulting/the-ultimate-blue-ocean-strategy-us-steel-needs-to-%e2%80%9cdecommodize%e2%80%9d-steel#comments Wed, 12 Nov 2008 15:36:52 +0000 Mike Bolden http://www.mikebolden.com/?p=168
Adapt Strong Service Model
U.S. Steel can innovate this commodity market, and differentiate itself from other steel manufacturers by wrapping strong servicing around supplying various niches. They can start with usage consultants to interface with customers on the best way to use their steel products – and/or to customize various production order batches. This may even lend itself to individualizing processing of steel products for a customer or set of buyer types. Not only does this allow differentiation, but it will allow U.S. Steel to charge a premium and widen margins. Because U.S. Steel is vertically integrated, its production and supply chain structure might have to be “flexed out” to focus on economies of scope versus scale. Dedicated resources will have to be focused on production and production types, and not on massive production scales. The fact that U.S. Steel supplies its own iron ore and a significant amount of coke can be good and bad in this economy-of-scope scenario. It’s bad if it remains geared toward massive production units. It’s advantageous if you scale into individualized production applications and units, and focus with smaller–but yet substantial–amounts of supply.

Industrial Branding For U.S. Steel; “We Know Steel”
USS can also differentiate itself by developing an “industrial branding” campaign – and really develop a brand. Again, the object is to move their steel products, and move the company away from being a commodity supplier. They should be a building solutions provider!!! They should actively pursue certain industry verticals, and seek to own these spaces. U.S. Steel needs to be the expert in steel building construction, application and usage. A branding value proposition might be, “We Know Steel.” They need to build the perception of U.S. Steel away from an “old line” company into a “new line” company which does seminars and has speakers at targeted industry vertical conferences and, of course, steel and construction conferences. U.S. Steel has a rich history along with a compelling story – and it can be a great marketing and branding tool to tell it. Think Anheuser–Busch.

Focus, Own, and Adjust; Applied Blue Ocean Strategy Playbook
In looking at what U.S. Steel can do to negate a likely, increasingly-difficult macro-environment, they need to focus, own, and adjust. They must focus on growing steady market niches based on usage and industry verticals. Then, they must seek to own spaces within them through differentiation and branding; these are a means toward an end. And, to profitably enable harvesting healthy rents, U.S. Steel must adjust its supply chain and production focus and structure to economies of scope. U.S. Steel knows steel, but the rest of world must know it – and value it!

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