The purpose of this article is to consider the changing competitive structure of the iron ore industry through investigating the strategic transformation taking place within the major (large) and junior (small) mining companies. This includes a comparative strategic and financial performance analysis of BHP Billiton and Grange Resources. Secondary data was gathered from a variety of sources including iron ore company Annual Reports, Analysts Reports and newspaper articles. Primary data was gathered through semi-structured interviews with Senior Executives who had an association with the iron ore industry in a variety of different roles. The findings showed that the falling iron ore price had led the iron ore companies to pursue innovative ways to transform their business models with the strategic goal of lowering their cost structure. Given that the major miners had a much lower cost structure compared with the junior miners, they were generally performing much better. The article concludes that the iron ore industry is likely to consolidate in the future as many junior miners struggle to lower their costs further and survive.
|Number of pages||10|
|Journal||Academy of Taiwan Business Management Review|
|Publication status||Published - Dec 2016|