Case Study Cemex

CEMEX Case Analyses CEMEX is a company that was created in one of the developing countries in last century and through good marketing strategy and innovation they became one of the leading manufacturer of cement and manufacturer of ready-mix concrete worldwide in the last couple decades. They are famous for their high quality products and reliable service.

The company’s strategy emphasized improving profitability through efficient operations. The company also shifted from selling products to selling complete solutions. By this, CEMEX has established a very strong brand managed to translate it into extraordinary profits from a commodity-driven business.

Now CEMEX is operating in over 50 countries and has $21.7 billions in annual revenue

The continuous learning, allowing the information to flow freely in both directions between the corporate headquarters and new acquisitions is a primary reason for the company’s success. CEMEX should stay the course and continue refining their strategy through reiterative process of learning. This will allow the company to stay relevant and keep its competitive edge in the ever-changing global economy.

CEMEX is in a strong position. And with they are continuing acquisitions of major companies such as RMC and, more recently, Rinker, CEMEX has important strategic advantages that give a powerful position in the cement industry.

6)

CEMEX has broken the stereotypical mold in the association between an archaically perceived industry and innovative technology. By integrating a well-defined information system built upon the latest advancements in tech, CEMEX has become a powerful leader in their industry.

2. SWOT Analyses:

Strengths:

Wider geographic presence - has operation facilities in more than 50

Alternative Identification and Evaluation In the next decades the cement consumption is expected to grow by 4.4% per year for developing countries and 0.9 for developed countries. This way I believe that one of the best strategy for CEMEX to continue its growth as a leader in cement industry is to invest and open plants and distribution centers in some of developing markets in Eastern Europe and Africa, where the demand for cement is expected to increase dramatically by 85% to 2020. The pros about this alternative is that the company could expend their markets and will increase their profit but at the same time the investment will be bigger and the return could be in a long term. Also according to marketing research in developing countries individuals homebuilders tended to be dominant purchaser at the market, so the company should think how could enter the retail markets and start selling in a small packages and quantities directly to the consumers. The pros are that they will increase their sales but also they will have more expenses for distribution and logistic. CEMEX also should expend their investment in South America where they have already a biggest share of the market (Exhibit 2) and straighten their position