Growth Strategies Case Study

EvrazHolding: Growth Strategies of the Largest Steel Manufacturer of Russia

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Abstract:
EvrazHolding, one of the largest vertically integrated steel manufacturing and mineral ore-processing group in the world, has grown over the years by mainly concentrating its operations in Russia and other countries of the erstwhile Soviet Union. The success of the group could be attributed to its competitive strengths like a dominant low-cost producer of steel products, a vertically integrated business, a dynamic and experienced management team, and an ever-growing mining business. To continue its growth, the group was planning to establish its operations in other European countries as well as in Asia through acquisitions.

Pedagogical Objectives:

• To understand the evolution of the domestic Russian steel industry
• To discuss the strategies adopted by EvrazHolding to establish itself as the dominant steel producer in Russia
• To discuss the future growth strategies of EvrazHolding to be a leading producer of steel globally by establishing itself in other European countries as well as in Asia through acquisitions
• To debate whether EvrazHolding would be successful in its future growth strategies in face of increasing competition.

Keywords : Russian steel industry; EvrazHolding; Alexander Abramov; Evroazmetall; EAM Group; Vertical integration; Inorganic growth strategy; Growth Strategies Case Study; Acquisitions and mergers; Economies of scale; Operational efficiency at EvrazHolding

Contents : 
EvrazHolding’s Domestic Market Share and Production Mix
The Russian Steel Industry
Major Steel Producing Countries
Estimated Russian Domestic Steel Demand
EvrazHolding: A Brief Profile
The Growth Strategies
Alexander Abramov