The economy has a major effect on everything, and AK steel is no exception. Due to the stagnant growth in the economy steel prices have dropped, and has caused AK to have a surplus in supply. Which is causing its stock prices to plummet, and at this point is barely just breaking even. Yet there is still hope for them in with companies such as Goldman Sachs has raised their ratings for AK. They project a comeback in the market for steel manufacturers, and see them gaining potential with in the coming years. Even thou the economy at times feels as if it was stagnant, it is not and is just moving at a sluggish pace. So if you are thinking steel you’re in for long haul, and as the economy gains a steady moving pace so will AK Steel.
AK Steel
Strengths
* Cost advantage
* Effective communication
* High R&D
* Innovation
* Loyal customers
* Market share leadership
* Strong management team
* Strong brand equity
* Strong financial position
* Reputation management
Weaknesses
* Poor supply chain
* Pollution
Opportunities
* Acquisitions
* Emerging markets and expansion abroad
* Online
* Product and services expansion
Threats
* Competition
* Economic slowdown
* External changes