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.
International Journal of Business and Globalisation, 2012 Vol.9 No.3, pp.246 - 259
Published online: 16 Nov 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article