Abstract This paper finds out the contribution of the steel industry to the construction activities and the introduction of Arcelor Mittal Steel. In addition, focus on how Arcelor Mittal has been established and its history. This paper is to find out the strategy of the Arcelor Mittal Steel industry to expand into markets based on evaluation of competitor environment from the perspective of demographic, economic, socio-cultural, technological, global, and political factors. Furthermore, a brief analysis of the industrial environment has been stated. There is also an attempt to establish a relationship with porter’s five forces model of competition with the Arcelor Mittal Steel industry. Keywords: ArcelorMittal, competitor, environment, technology, economy, culture, demography, political issue, challenges, porter’s five forces model. Introduction “Steel is the most widely-used structural metal in the auto and building construction industries” (IEDC, 21 December 2007). The steel industry is to be said as the key element to improve and maintain the construction activities of a country. This industry is now in a better position because of the global demand growth and the certainty of consolidated industry. In the discussion of the steel industry, one company, Arcelor Mittal that should be named. Arcelor Mittal is now leading as the world’s largest and most global steel company, which comprises.32 million personnel in more than 60 countries. Arcelor Mittal is the result of the merger from the agreement to combine both Arcelor and Mittal steel. In 2006 the two companies reach an agreement to combine in a merger of equals (Arcelor Mittal, n.d.). Consequently, it is three times the size of its nearest competitor and maintaining its business activities in more than 60 countries. The success of Arcelor Mittal relies on gathering and analyzing the general industry and competitor environment to assess their potential for global growth and construct strategies for profitability. However, such type of success is not easy to obtain and continue because of the demographic, economic, political, socio-cultural, and technological challenges. This paper will mainly focus on how the different segments of the general environment prompted Arcelor Mittal to expand into markets and launch takeovers. In addition, it will provide a brief analysis of the industrial environment and the five forces model of competition as it relates to Arcelor Mittal. Arcelor Mittal and its competitors Arcelor Mittal is the leader in every major global area of automotive, construction, household appliances and packaging, R&D, and technology as well as suppliers of sizeable captive raw materials and outstanding distribution networks (Mickefett, 21 February 2008). JFE holding, Nippon, TATA steel, United States steel are considered as the main competitor of the Arcelor Mittal steel industry (ISSB, 2006). The annual sales of the steel industry worldwide: Company            headquarters    Total employment  3-year growth  Total assets($mm)  Total sales($mm) Arcelor Mittal     Luxembourg      3,33,000 in 2005  N/A            112,166            58,870           US Steel           Pittsburgh, pa  44,000            12%            10,586             15,715           AK Steel           Middletown, OH  7,000             16%            5,518              6,069            Steel dynamics     Fort wane, IN   3,490             108%           2,247              3,239            Nucor corporation  Charlotte, NC   11,9