CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX’s position in the global cement industry? First‚ the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus‚ the expansion of the scale of the company is very critical to enhance the competitiveness‚ especially the international expansion to different
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transformation of Cemex‚ an emerging multinational from Mexico‚ into a Global Latina that has consolidated its position throughout its ’natural markets’ to become the world’s biggest building materials multinational. It provides an example of growth through acquisitions and shows how an emerging multinational conquers the world. The general objective is to study the growth and internationalisation strategies of Cemex with a special focus on: (1) international expansion through natural markets; (2) business
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to be the competitive advantage if CEMEX. Continued innovation High level of commitment to customer service and satisfaction Proven post-merger integration expertise (PMI) Efficient production‚ distribution and delivery processes through information system Ability to identify opportunities in developing countries CEMEX is one of the world’s largest building materials suppliers and cement producers. Founded in Mexico in 1906. They supply cement to CEMEX has operations extending throughout
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CEMEX: TRANSFORMING A BASIC INDUSTRY COMPANY Case Study Questions 1. How is CEMEX Mexico providing added value to its customers? R: As cement is a commodity market‚ CEMEX realized that they should provide added value by developing customer services and offering solutions for the needs/wants of their customers. See Appendix 1: CEMEX - Customer Services 2. How has CEMEX developed and leveraged its strengths to enhance its market position and profitability? R: The Company was extremely
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CEMEX Cemex is one the leading producer of cement in the world. The company was born in 1906 in Mexico as Cementos Hidalgo. The actual name was given in 1931 after the acquisition of the Cementos Portland Monterrey; the company was renamed Cementos Mexicanos – CEMEX. The company grew very fast in Mexico and soon became the first cement producer in the country but it was during the 90’s that the top management came to the decision that the future of the company will go thru the expansion in the
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CEMEX What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly‚ how can cross-border activities add value in an industry as apparently localized as cement? There have been several benefits for CEMEX and its global competitors derived from globalization: (strategic group‚ part of the big six competitiors) International trade offered opportunities to arbitrage price differentials. Import from low cost countries and sell to 3rd parties to
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Running Header: Foreign Market Entry and Diversification Week 7 Assignment 3 Foreign Market Entry and Diversification Strayer University BUS: 599 Dr. Melinda Swigart November 24‚ 2013 Abstract There aren’t too many non-profit organizations that enter foreign markets due to the unfamiliar territory. Before a company enter into international markets to conduct business it is important to understand the country’s culture‚ customs‚ needs‚ and unspoken rules
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CEMEX is one of the world’s top producers of cement and concrete manufacturer and it is rapidly spreading across the globe‚ serving thousands of customer’s everyday through a worldwide network. CEMEX based in Mexico. At first CEMEX’s strategy are improve and increase their profit to more efficient by selling products and turn into selling of complete solution because they have difficulties in their business‚ because of lack of well communication system‚ weather changes‚ traffic jams and problems
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Cemex Case Write-up Cemex and the Low Income Construction Market * Cemex’s target market in Mexico does not realize their dream home‚ while they can afford it. * Cemex’s revenue comes from big-ticket/large scale customers‚ middle- and upper-income individuals‚ and low income/do-it-yourself homebuilder customers. The sales for low-income customers only drop 10-20% during 1994 Mexico crisis. And Cemex see large market potential in low-income customers market. Thus‚ Cemex’s target market
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What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly‚ how can cross-border activities add value in an industry as apparently localized as cement? - Reduction of tariffs associated with exporting - Due to internationalization these companies have been able to spread their risk. Therefore‚ if one market is not performing they can rely on the other (diversification) - Talent across markets - Ability to identify new emerging markets and having
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