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A study on market of the Arcelor Mittal in the Global scenario

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"In the post industrialization era, the monopoly of a single entity over an entire business is a very rare phenomenon. The galvanization of a sector by one company would mean the concentration of the market power in one area. The current market dynamics are against such kind of movement as it undermines the free and unhindered transfer of products. But, Arcelor Mittal is one such company that has defied all the odds. It has also amazed the learned commentators on the seamless ease with which it has integrated into the domain of business. The company is the largest producer of steel in the world. It is located out of Luxemborg and the operation is one of the largest in the world. It holds the coveted position in the supply of steel to all sectors, such as automotive, airline, construction, packaging and the other industries. This entity was formed in the year 2006 by the merger of the two companies named as Arcelor and Mittal.

The company has bee enjoying very high revenues due to the increasing infrastructural activities in the world. The other factor that is a core competence of Arcelor Mittal is the possession of the large number of captive mines in numerous geographical areas. This leads to a distinct strategic advantage in terms o serving the complete market. It also serves as a buffer during the times of the fluctuation, causing the demand to smoothen. Mr. Laksmi Mittal serves as the CEO of the company, whereas Mr. Aditya Mittal is the CFO. The revenues of the company for the last year were an estimated 79.3 billion dollars. This was an increase of almost 12.7 percent over the last year. The increase was driven by the sudden spurt in the economy as well as the infrastructural activities. He profit figures increased to around 2.916 billion. But, the ROI (Return on Investment) has decreased by almost 2.67 percent when compared to the last year. The decrease in the proprietary ratios was also seen in the current fiscal was also less as the growth prospects in certain regions have decreased. The other problem that the company faces as a part of the business is the fluctuating prices of the steel in the world market .This would lead to huge spikes as well as monumental decrease in the market fortunes. The company faces a lot of competition from unorganized players and industrial uncertainties. But the rich mix of experience and technical expertise would hold the company in good stead for the future. "

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