-restriction and regulation of imports, exports and trade tariffs decide whether a company can compete globally: eg. GATT agreement in 1989, Mexico-open marketplace, enabled Cemex to expand globally.
- governments may decide to nationalize or privatize the cement production; eg. Venezuela nationalized cement production.
- political stability of a country will highly affect the performance of the industry
-any firm in the industry is highly dependent on the economic performance of country/countries it operates in ( changes in expandable income, performance of firms within the country are affected).
-emerging economies provide great opportunities for growth in the industry; expanding infrastructure.
- fluctuating exchange rates also impact performance
- rising costs of production and capital affect a firm’s competitiveness
- Demographics: can affect things such as the size of the labour force, the demand for housing, etc. all of which have an impact on the cement industry.
-The technology used in the production of cement is constantly evolving; innovations can impact cost and quality of products.
- Innovations in technology of information systems have an impact on costs of distribution and provide added value for the consumers.
Porter’s Five Forces (industry analysis)- The key determinant of a firm’s profitability is the attractiveness of the industry it operates in; 5 forces model assumes that industry attractiveness and the firm’s competitive position within the industry are influenced by 5 forces:
1. Entrance of new competitors:
Barriers to entry are relatively high:
a. High capital costs (capital requirements) +
b. Low efficiency industry: the minimum efficiency level is aprox. 1 mil. tons a year +
c. High transportation costs and logistics +
- the benefits of generating economies... [continues]
Cite This Essay
(2010, 05). Cemex Case Study Analysis. StudyMode.com. Retrieved 05, 2010, from http://www.studymode.com/essays/Cemex-Case-Study-Analysis-322964.html
"Cemex Case Study Analysis" StudyMode.com. 05 2010. 2010. 05 2010 <http://www.studymode.com/essays/Cemex-Case-Study-Analysis-322964.html>.
- MLA 7
"Cemex Case Study Analysis." StudyMode.com. StudyMode.com, 05 2010. Web. 05 2010. <http://www.studymode.com/essays/Cemex-Case-Study-Analysis-322964.html>.
"Cemex Case Study Analysis." StudyMode.com. 05, 2010. Accessed 05, 2010. http://www.studymode.com/essays/Cemex-Case-Study-Analysis-322964.html.