ArcelorMittal's Corporate strategy: Internationalization - Assignment Example

The ambition that ArceorMittal shares with its customers requires it to establish itself as the choice industrial supplier rather than being considered as low cost solution internationally. Its internationalization strategy should not have the company being mistaken as being an industrial nomad but an effort to have its efforts bend to come up with a progressively and enduring position within each nation. Each of the many ArceorMittal plant is mostly involved in the process of exporting or it is almost in the verge of exporting.

Working together with partners and other companies, ArceorMittal is gaining new and ripe market share but this is also associated with some risks. In low-cost nations, ArceorMittal team has been observed to fall with reference to its scale placing it in the small to medium category of enterprises yet it is the ambition of the company to offer high quality and fast services always. The history of ArceorMittal steel group was observed to be partly confrontation between the globalization new phase and European regional project.

Since 2006, ArceorMittal has remained the leading steel firm in the world. This can be credited to its internalization strategy as it is strategically placed to facilitate its expansion globally. The firm stated as Arcelor and it immediately emerged as a European steel champion. The company rapid growth was due to its strategies that included nationalization, public ownership, and privatization. The management by Saint-Gobain, a well known as a business hub of French Capitalism international organization, was in full support of the European project.

He believed for any European business to succeed, it had to feel profoundly European (Ranieri and Gibellieri, 2000.p. 132). During his reign in the company, he managed to indentify the main problem facing the steel industry in Europe was international prices levels and come up with a solution suggesting that the number of steel producers should be limited across the world. When the steel group still was a public firm, he came up with limited internationalization forms that had the interests of the group in stainless steel found in Italy and Spain.

With the change in management, the group expanded further the internationalization of this industry. This move led to a number of international agreements like between CST an Arbed as well as Acdrelia from Spain. This has been looked at as Arcelor forerunner. The other major agreement with international company involved Luxembourg which was among the largest steel producers in France. The internationalization strategy employed by Arcelor at this time was to come up with a European giant company and this was successful.

The location of the company at Luxembourg can be looked at as part of the internalization strategy. This Location enabled Arcelor to reorganize its capital that was initially widely dispersed. When Arcelor was created, more than 80% of its shareholders had been left out and were not involved in the control of the group. But after community of the ECSC Treaty of Paris, everything changed and Arcelor emerged as a European giant (Mioche, 2004, p. 82). Dolle also played in huge role in the internalization process of the group when he served as the operation manager.