Profitability
Ironvale Mining Group, a large iron ore prospector and extractor, must lift profitability in a market that oversupply has turned brutally price competitive.
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Ironvale Mining Group is an international iron mining company focused on prospecting and extraction. The company essentially finds the iron ore, extracts it and sells the ore to refiners who will use it to create steel products, primarily for construction.
The company's primary customers are in North America, Europe, and, more recently, China. Ironvale Mining Group's presence across these three markets has insulated them from most economic cycles as when one market goes down, another goes up. Even during the 2008 crisis, the firm did well thanks to strong demand in China.
Recently, however, the demand for steel has slowed across Ironvale Mining Group's three markets. In addition to this, technology has improved dramatically allowing refiners to yield more iron per unit of ore. These two factors have led to a global oversupply and a subsequent decline in prices, which is hurting Ironvale Mining Group.
You were hired to help CEO identify what actions the firm can take to address the demand downturn and become more sustainably profitable.
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