B2B Marketing

Marketing Project

Section B, Group 4

Table of Contents
Introduction........................................................................................................... 3
BHP (BlueScope) Major Customer Segments:........................................................5
Customer Profiling:......................................................................................... 6
BlueScope Competitor Analysis:............................................................................7
Industry Analysis................................................................................................... 8
Market Size...................................................................................................... 8
Investments..................................................................................................... 8
Government Initiatives/Policies................................................................................. 9
The Problems Faced By the Industry........................................................................10
Road Ahead......................................................................................................... 10
Past method adopted by BHP.............................................................................. 11
Traditionally most popular B2B ecommerce application used by American companies like
Bluesource are:.................................................................................................... 11
Final Recommendations....................................................................................... 11

Introduction

BlueScope is a flat steel producer for the domestic Australian, New Zealand and US markets,
and is a leading international supplier of steel products and solutions, principally focused on
the global building and construction industry.
It was demerged from BHP Billiton on 22 July 2002 as BHP Steel and renamed BlueScope
Steel on 17 November 2003.
The corporate headquarters are located in the Bluescope Steel Centre at Melbourne,
Victoria.The Major products of Bluescope includes steel slab, hot rolled coil, steel plate,
automotive steel, galvanised steel, corrugated galvanised iron, "ZINCALUME"
(55% aluminium, 43.5% zinc, 1.5% silicon) coated steel, and "COLORBOND" brand prepainted steel.
The Company is structured into four businesses namely BlueScope Australia and New
Zealand, BlueScope Building Products, Global Building Solutions and North Star BlueScope
Steel. In March 2012 a new coated steel manufacturing plant was inaugurated
in Jamshedpur, Jharkhand state, India.
During late 1980s B2B-related technology implementations in the form of Electronic Data
Interchange (EDI) were first implemented by a number of large companies which included
the major retailer Coles Myer, Ford automotive, Australian Paper Manufacturing (APM) and
BHP Steel(BlueScope)
Adoption of EDI in Australia was very slow due to various reasons such as lack of awareness
of the benefits of EDI and lack of willing trading partners as well as higher implementation
costs associated with the establishment and on-going communication costs
The emergence of E-commerce as the communications medium for EDI transactions is
capable of reducing costs such as the cost of purchasing the translator software, the
establishment of the communications network or subscription to a value-added network etc.
However, the implementation of Internet based EDI in Bluescope has several issues such as:
Major technological issue related to Complexity and compatibility. They can be termed as
critical variables for successful e-Commerce implementation.

Trading partners both within Australia and overseas are currently using a variety of different
standards and platforms. The implementation requires uniform platform across business
partners. This increases not just the cost of the implementation but also the complexity of the
process.
Implementation of e-commerce requires huge commitment of the organisation members
especially the management to support the process such as resource commitment. Convincing
the top management to the implementation process is not an easy task.
Training and educating the staff is very critical for implementation process. Users training is
critical for the EDI-related applications including Internet-EDI for e-commerce
implementation.
Apart from this, the various trading partners /clients associated need to also provide
commitment to the implementation of the project.
Implementation of e-Commerce has a close relationship with ability of organisation to gain
trust from trading partners. Bluescope needs to justify the cost of labour and network
supports for its suppliers to gain their trust and support.
Trading partner relationships play crucial roles for the success of the implementation. Being
an initiator could mean that Bluescope has to provide various supports to its trading partners
or clients in order to have a successful implementation

BHP (BlueScope) Major Customer Segments:

BlueScope (earlier known as BHP) offers a large range of products, ranging from valueadded steel building and construction products. It operates around 100 plants in 17 countries
across the globe, and have strategically targeted major growing markets. The customers can
be divided in two major segments:
1. Industrial: These customers use steel as raw materials in order to develop their own
products. The industries include power and energy, railways and other infrastructure
companies, aviation, steel and cement plants as well as automobiles. These customers require
a high quality product, often with added customization that would suit their business needs.
For example, a customer may require steel rods of particular shape and size so that it directly
fits as a component in the automobile being manufactured.

2. Builders/Contractors: BlueScope offers construction products including coated and

painted strip products through to roof and wall cladding, purlins and house framing, and
custom engineered building solutions. The major brands BlueScope owns include
LYSAGHT steel building products, COLORBOND steel (known as COLORSTEEL in
New Zealand), ZINCALUME steel, GALVABOND steel and GALVASPAN steel.
The customers in this category demand higher customization and order products based on the
projects (contracts) they have. Various environmentally rated buildings for fortune 500
companies are also built using products from BlueScope. For example, BlueScope has a
range of branded products to meet specific regional needs in Asia. Clean COLORBOND
steel is a prepainted steel product resistant to tropical discolouration. In Malaysia,
PrimaDesa prepainted steel is market leader, as is TRUZINC galvanised steel in
Thailand.

Customer Profiling:
The BlueScope Steel Group comprises
six reportable segments: Coated &
Industrial Products Australia (CIPA);
Building Components & Distribution
Australia (BCDA); New Zealand &
Pacific Steel Products (NZPac); Global
Building Solutions (GBS); Building
Products ASEAN, North America and
India (BP); and Hot Rolled Products
North America (HRPNA).
The revenue breakup is as follows:

Reference: https://www.bluescopesteel.com/media/330511/bluescope%20annual%20report%20web.pdf

BlueScope Competitor Analysis:

The major product of BlueScope is steel and related products and the market is segmented
based on the types of the products in the steel industry. Therefore, the competition is different
for the different product offerings within steel and related domains.
For BlueScope, with a focus on increasing the market scope for hot rolled and coated steel
products, the company majorly serves Australian market. The products include pre-painted
steel, tinplate, blackplate and roll formed building and industrial steel, which are sold to
automotive, construction and general manufacturing industries. The major competitors for the
company in this segment are Nippon Steel & Sumitomo Metal Corporation, Posco and
Arrium Limited.
Bluescope doesnt manufacture steel long products. The term long products generally
includes structural beams, rod, bar, wire, reinforcing products and pipe and tube.The major
competitors producing steel long products are OneSteel and Smorgon. However, BlueScope
enjoys monopoly in some of its products, especially in the Australian markets. It is the only
manufacturer of flat steel products in Australia. Flat steel products are also imported.
A common factor uniting the product specific segments is the fact that the companies in the
business rely nearly wholly on imported products. This, therefore, implies a longer lead time
and becomes an important factor in the supply chain. The relationships with the overseas
supplier and trading houses in Australia are a key factor to the success of making the business
operationally viable. Thus, imports become a competitive constraint in the industry. The
imports can negatively impact local demand, and therefore impact the current market position
of the company. Thus, margins stand the chance of affecting companys financial prospects.
Another important threat the industry faces is competition from other materials and from
other steel producers. They can significantly reduce market prices, as well as the demand for
BlueScopes products. Based on the application, steel faces competition with substitutes
including plastic, wood, composites, concrete and aluminium. The improvement in
technology, production, pricing or relative higher acceptance of substitute materials can result
in lower market share.

Industry Analysis

Market Size
Steel creation limit of the nation extended from around 75 Million Tons Per Annum (MTPA)
in 2009-10 to around 90.5 Million Tons (MT) in 2014-15.
India delivered 7.4 MT of steel in the month of June 2015 reporting the third most
noteworthy generation level all around which was 0.8 for each penny higher than the nation's
steel creation around the same time a year ago.
The steel division in India contributes almost two for each penny of the nation's total national
output (GDP) and utilizes more than 600,000 individuals. The per capita utilization of
aggregate completed steel in the nation has ascended from 51 Kg in 2009-10 to around 59 Kg
in 2014-15. India's steel utilization for FY 2015-16 is evaluated to increment by 7 for each
penny, higher than 2 for each penny development a year ago, because of enhancing monetary
movement, according to E&Y's 'Global Steel 2015-16' report.

Investments
Steel industry and its related mining and metallurgy areas have seen various real speculations
and improvements in the later past.
As per the information discharged by Department of Industrial Policy and Promotion (DIPP),
the Indian metallurgical businesses pulled in remote direct ventures (FDI) to the tune of US$
8.7 billion, separately, in the period April 2000May 2015.
A portion of the significant interests in the Indian steel industry are as per the following:
Posco Korea, the multinational Korean steel organization, has consented to an arrangement
with Shree Uttam Steel and Power (some portion of Uttam Galva Group) to set up a steel
plant at Satarda in Maharashtra.
SAIL arrangements to contribute US$23.8 billion to expand the steel generation to 50 MTPA
by 2025.
ArcelorMittal, world's driving steel creator, has concurred a joint endeavour with Steel
Authority of India Ltd (SAIL) to set up a car steel producing office in India.
Iran has displayed enthusiasm for fortifying ties with India in the steel and mines area, said
envoy of the Islamic Republic of Iran, Mr Gholamreza Ansari in his discussion with Minister
of Steel and Mines, Mr Narendra Singh Tomar.

Public area mining monster NMDC Ltd will set up a greenfield 3-million ton for every
annum steel factory in Karnataka together with the state government at an expected
speculation of Rs 18,000 crores (US$ 2.8 billion).
JSW Steel has reported to add ability to make its plant in Karnataka the biggest at 20 MT in
2022

Government Initiatives/Policies
The Government of India is expecting to scale up steel generation in the nation to 300 MT by
2025 from 81 MT in 2013-14.
The Ministry of Steel has reported to put resources into modernisation and development of
steel plants of Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited
(RINL) in different states to improve the rough steel creation limit in the present stage from
12.8 MTPA to 21.4 MTPA and from 3.0 MTPA to 6.3 MTPA individually.
The Ministry of Steel is encouraging setting up of an industry driven Steel Research and
Technology Mission of India (SRTMI) in relationship with people in general and private
division steel organizations to lead innovative work exercises in the iron and steel industry at
a beginning corpus of Rs 200 crore (US$ 31.67 million).
A percentage of the other late government activities in this division are as per the following:
Government has arranged Special Purpose Vehicles (SPVs) with four iron mineral rich states
i.e., Karnataka, Jharkhand, Orissa, and Chhattisgarh to set up plants having limit between 3 to
6 MTPA.
SAIL arrangements to contribute US$ 23.8 billion for expanding its creation to 50 MTPA by
2025. SAIL is as of now extending its ability from 13 MTPA to 23 MTPA, at a speculation of
US$ 9.6 billion.
A Project Monitoring Group (PMG) has been constituted under the Cabinet Secretariat to
quick track different clearances/determination of issues identified with ventures of Rs 1,000
crore (US$ 152 million) or more.
To expand household esteem expansion and enhance iron mineral accessibility for residential
steel industry, obligation on fare of iron metal has been expanded to 30 for every penny.

The Problems Faced By the Industry

Numerous steel titans marked for opining new commercial enterprises with a few state
governments (particularly Jharkhand, Orissa, Chhattisgarh and West Bengal) for new
ventures however none of them have emerged. It has taken 5 long years for Tata Steel's
Kalinganagar (Orissa) venture to finish the recovery and resettlement process. JSW's
proposed Salboni plant (W.B) hasn't been distributed the required measure of area, and in
addition the administration, as of late, took control over around 400 sections of land of area
purchased by the organization due to a state decide that any pariah can't purchase more
than24 sections of land of town area. POSCO is confronting gigantic resistance from the
locals of Jagatsinghpur (Orissa) for area securing while numerous other steel plants are
anticipating help from the administration as far as either land or base.

Road Ahead
India is expected to become the world's second largest producer of crude steel in the next 10
years, moving up from the third position, as its capacity is projected to increase to about 300
MT by 2025. Huge scope for growth is offered by Indias comparatively low per capita steel
consumption and the expected rise in consumption due to increased infrastructure
construction and the thriving automobile and railways sectors.

Past method adopted by BHP

Traditionally most popular B2B ecommerce application used by American

companies like Bluesource are:
1. Electronic data interchange (EDI), is the exchange of formatted electronic documents
between organizations using an agreed standard. Various forms of traditional EDI
include proprietary file exchange, VAN-based or direct link EDI, and EDI to fax.
2. Internet EDI, which is EDI formatted documents transmitted over the Internet (eg.
the use of file transfer protocol (FTP) or email applications to place the EDI messages
into formatted documents and transmit them to their intended recipients).
3. Web-forms, which is the use of a web-based form or web intelligent interactive form to
exchange business documents over the Internet. This included various organizations
specific document

transmissions and exchanges;

4. XML EDI, which is the Internet-based EDI featuring interactive business document
exchange, has been predicted to be the next mostly used e-Commerce for the B2B eCommerce .

Final Recommendations

To implement any process there should be a proper structure that need to be followed . It is
not a single process (nor, indeed, a single project), but rather a continuous series of
stages or projects, for which different driving forces might trigger the initiatives. This
model represents the three sub-processes of the implementation: the change process,
the growth process and the integration process.
1. Change process : It describes the process of change, which results from the introduction
of a new technology or policy. this process further divided in 4 stages:
a. Initiation : This process includes feasibility study of the new technology. This helps an
organization to decide whether to adopt or not to adopt technology.
b. Systems Development : It includes the systems study , systems design and systems
testing which help in installation and development of the systems
c. Routinisation : Depending on the technology employed this process involves education
and training process for the users.

d. Diffusion and Expansion : The process of diffusing and expanding the use of the
technology into the organization's various business units, as well as externally to trading
partners.
2. Growth Process: It describes the maturing use of the information systems within the
organization. Various aspects can be measured to describe this stage of growth process such
as the type of applications implemented or the number electronic document exchange,
the maturity level

of

the companys initiative and also the innovativeness of the

initiative.
3. Integration Process: It includes integrating or incorporating the new business process
into existing business processes. EDI integration occurred in four stages: from a standalone PC to full corporate integration.
There are various factors affecting the adoption and implementation of e commerce
Technology. Earlier technology, management and business-related issues are believed to
affect the e-Commerce implementation. Business issues have been increasingly considered as
the major factor indicating the maturity of the implementation. The impact of such
implementation is sometimes difficult to measure due to the intangible nature of the
benefits, such as enhanced relationships with trading partners and benefits of the
learning process

References
1. http://www.bluescopesteel.com/about-us/history
2. http://www.bluescopesteel.com/about-us/our-business/bluescopeaustralia3. new-zealand

4. https://en.wikipedia.org/wiki/BlueScope
5. https://en.wikipedia.org/wiki/BHP_Billiton
6. http://www.researchgate.net/publication/261118326_Management_and_b
usiness_issues_for_B2B_ecommerce_implementation
7. http://www.ibef.org/industry/steel.aspx
8. http://www.cci.in/pdfs/surveys-reports/iron-and-steel-industry-inindia.pdf
9. www.fundoodata.com/industry-companies/iron-&-steel
10.www.steelmint.com