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Porters Five ForcesIndia is expected to become the world's second largest producer of crude steel in 2015-16, moving up from the fourth positionThe Indian steel sector enjoys advantages of domestic availability of raw materials and cheap labour. Iron ore is also available in abundant quantities. This provides major cost advantage to the domestic steel industry.The steel industry reflects the overall economic growth of an economy in the long term as demand for steel is derived from other sectors like automobiles, consumer durables and infrastructure.These indicators suggest that India will soon move up to the second position both in production and consumption of steel, according to a sectorial analysis by Frost & Sullivan's Metals & Mining PracticeProducts of SteelInternal Factor EvaluationFactors taken into ConsiderationManagement( Planning, organizing, motivating, staffing and controlling)MarketingFinance/AccountingProduction/ OperationsResearch and DevelopmentManagement Information SystemsValue Chain Analysis( VCA)Ratings:-1(Poor)-4(Superior)Weights:- 0(Not important) 1(Very important)Weighted score:- weights*RatingsTotal :- sum total of weighted scores

External Factor AnalysisFactorsScore(S)Weightage(W)Total weighted value(S*W)ThreatsTechnology Risks 10.150.15Raw Materials Security and Price Volatility20.120.24Forex, Credit, Liquidity and Counterparty Risk20.070.14Regulatory and Compliance Risks20.060.12Health, Safety and Environmental Risks30.110.33OpportunitiesMacro environment40.180.72Industry Cyclicality30.150.45Growth Projects30.120.36Financing30.080.24Total2.75Factors taken into ConsiderationManagement( Planning, organizing, motivating, staffing and controlling)MarketingFinance/AccountingProduction/ OperationsResearch and DevelopmentManagement Information SystemsValue Chain Analysis( VCA)Ratings:-1(Poor)-4(Superior)Weights:- 0(Not important) 1(Very important)Weighted score:- weights*RatingsTotal :- sum total of weighted scores TakeawayCompany should continue their expansion strategies if possible through acquisitions in domestic as well as foreign market

Company should focus more on technology driven operations to gain competitive edge

Company should focus on alternative sources of energy as they are highly dependent on coal mines