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 (2007). Through they are managing style the company has a big comparative advantage,
The success of the company coming from the developing market and becoming one of the three global giants in the industry is a powerful testimony to the appropriateness of their corporate philosophy, known as CEMEX way. 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.
CEMEX has broken the stereotypical mold in the association betwee...
... middle of paper ...
... they have already a biggest share of the market (Exhibit 2) and straighten their position there.
Along with that CEMEX should start investing more in products that are good for the environment, which is very important for the majority of the population and many people take in consideration when purchase products. That will benefit the company in long term but also will generate cost in short term.
CEMEX should invest and expending in the developing countries in Africa and Eastern Europe, where the cement market doesn 't have yet many competitors and is expected to grow at very high rate as soon as possible. Also should open local distribution centers and supply the retails with product design for individual homebuilders, which will increase their profit eliminate the middle link that increase the price for repacking between customers and producers.
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