Competitive advantage through sustainable product development in construction
A Corus case study

Page 0: Introduction

In the modern business world a company needs to innovate to remain successful. By using sustainable principles Corus can develop a lasting competitive advantage. Corus was formed in October 1999 through the merger of British Steel and the Dutch company Koninklijke Hoogovens. It is a public limited company, headquartered in London and quoted on the London Stock Exchange and the...
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Page 1: Understanding the external environment

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Corus examined its construction strategy in light of the external environment, to identify future market needs. By linking Corus competencies and technical knowledge to future market needs, Corus aims to develop products that give the company a competitive advantage in construction. PEST analysis is a powerful tool that can be used to help analyse the external construction environment. This...
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Page 2: Conclusions from the analysis of the external environment

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A sustainable building is one that limits energy use and scarce resources. This is vital because 26% of the UK's energy use is linked to heating buildings. Governments will use building regulations and planning permission controls to meet the Kyoto protocol. Outer town developments will be restricted in favour of inner city developments including brownfield sites. There will be a shortage...
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Page 3: Sustainability

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Sustainability was a key theme in Corus' analysis of the external environment. In 1987 the Bruntland Commission defined sustainable development as 'meeting the needs of the present without compromising the ability of future generations to meet their own needs'. Most of the energy we consume - whether it is the petrol for cars or the gas that heats our houses - comes from non-renewable resources...
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Page 4: Aims, objectives and adding value

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Working from its conclusions Corus has set out what it wants to achieve in a vision for sustainable construction. 'Corus aims to create valued added products and services to promote steel intensive commercially viable buildings. Through advanced design and technology we will improve the quality of life in society whilst enhancing the life-cycle credentials of the built environment.' Corus...
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Page 5: Products and solutions from Corus

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This section explains two of the product areas where Corus is developing systems in response to the findings of the external analysis. Residential solutions Steel frames for homes and modular residential systems for flats, constructed off-site in a controlled environment to precise specifications (reducing waste), ensuring improved insulation (reducing energy consumption) and air tightness...
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Page 6: Conclusion

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By examining trends in the wider (macro) environment it is possible to identify product and market opportunities. The need for sustainable construction presents many opportunities for Corus to add value, and develop a competitive advantage. Using PESTLE analysis is an excellent tool to examine the macro environment and by linking this tool with future trends it is possible to develop...
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Related: Tata Steel
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