Client Name

Union Steel Industries

Faculty Advisor

Ms. Rakhshanda Mustafa

SBS Thought Leadership Areas

Entrepreneurship and Innovation

SBS Thought Leadership Area Justification

This project is classified under thought leadership area of Entrepreneurship and Innovation, as it is about finding the strategic opportunity for differentiation in a highly commoditized industry. The study was conducted by qualitative and quantitative research, which aimed to analyze the impact of Union Steel's shift from price-based competition to innovation and trust, quality and value creation in order to strengthen Union Steel's competitive position in the market. 

One of the major benefits of the project was the discovery of cut to length steel's ability to solve a range of practical problems for builders and contractors, such as material wastage and cost inefficiency. The recommendations generated over the course of this study highlights the value of innovative thinking and a customer-centric approach to develop sustainable competitive advantage; therefore, Entrepreneurship and Innovation is the most appropriate classification for this ELP. 

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

This project falls mainly within the framework of Sustainable Development Goal 9 (Industry, Innovation and Infrastructure) which aims at strengthening competitiveness, innovation and quality in steel industry in Pakistan. The quality and reliability of steel reinforcement bars are essential to the safety and durability of residential infrastructure, and are tightly coupled. This research identified opportunities for Union Steel to gain a competitive advantage in the market through innovation, quality assurance and operational efficiency, as well as through price. 

The study also underscored the potential of Union Steel's cut-to-length steel solution, which has reduced material wastage and boosted construction efficiency for builders, and contractors. The project helps promote the use of quality and standard steel products and innovative manufacturing solutions, which will lead to more sustainable industrial practices and an improved infrastructure. 

NDA

No

Abstract

This ELP was done for Union Steel Industries (USI), an established producer of steel rebar products who operates in the southern part of Pakistan’s construction market. The main aim of this study was to find out the influencing factors behind brand choice in the residential construction market, and to come up with a strategic approach to help USI transform from being a B2B (business-to-business) brand to become more of a B2C (business-to-consumer) brand.

For the collection of information, a mixed-method descriptive approach was adopted. The quantitative approach involved questionnaire-based surveys conducted among the homeowners engaged in building their houses, while qualitative included stakeholder interviews, retail audit, visits to construction sites, and home owners’ field observation. Areas of the survey involved various parts of Karachi where homeowners, builders, developers, suppliers, dealers, contractors, and consultants were interviewed.

It became clear that the decision regarding steel purchases is not taken by just one stakeholder, but rather through an ecosystem including homeowners, construction contractors, consultants, builders, dealers, and suppliers. The critical factors that influence the choice of brand include trust, quality perception, brand reputation, stock level, and credit policy. The Amreli Steel was shown to have highest level of brand recognition and trust among all brands, whereas there appears to be an untapped market segment in the form of "Affordable Quality". There was also a high level of interest demonstrated by stakeholders in the Union Steel's C2L product because of its benefits such as reduction of material wastage, better efficiency, and higher profitability of projects.

Considering this information, our paper recommends positioning Union Steel as a "Smart Construction Partner" through re-branding, consultant involvement, development of dealerships, geographic segmentation of market, development of better distribution channels, and further commercialization of the company's C2L solution.

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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