Title: Fortescue Metals Group Ltd - becoming the lowest cost leader through managing key stakeholders

Authors: Gary J. Stockport

Addresses: Business School, The University of Western Australia, 35 Stirling Highway, Crawley, Perth, WA 6009, Australia

Abstract: This article considers how Fortescue Metals Group (FMG) had strategically positioned itself in the global iron ore industry through building a lowest cost leadership strategy as well as targeting the Chinese market. Critical to its success had been the effective management of a variety of key stakeholders. This article focuses upon three key periods of FMG's development: a) the construction period (July 2005-June 2007); b) the production period (July 2007-June 2009); c) the growth period (July 2009-present). The growth of the company under its charismatic leader Andrew 'Twiggy' Forrest is also considered.

Keywords: global iron ore industry; start ups; firm growth; lowest cost leadership; stakeholder management; strategic leadership; key stakeholders.

DOI: 10.1504/IJBG.2012.050365

International Journal of Business and Globalisation, 2012 Vol.9 No.3, pp.246 - 259

Published online: 16 Nov 2012 *

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