Retrieved from https://business-essay.com/cemex-companys-strategic-analysis/, BusinessEssay. While Cemex concentrated its marketing and expansion in emerging Latin markets due to cultural proximity, these companies had established a solid base in the developed world and were making impressive roads in the emerging markets. During 2008 and 2009, the company staved off bankruptcy through a series of major cuts and refinancing efforts. Many companies are already reeling under the effects of the financial crisis while others are filing for bankruptcy. As a bold cultural innovation, CEMEX modified the existing tanda system and renamed it Patrimonio Hoy, in 1998. Technical consultation pertaining to the right quantity and quality of raw materials required to build a house or a single room was provided free of cost, which optimized the utilization of raw materials and minimized wastage. Windmills are a good example. This kind of efficiency has placed it ahead of its competitors. Madridejos: Cement is a global business there are standards you can apply everywhere. Way to Play. In other words, we are building the capability of sharing knowledge. Mentions of Strategy& refer to the global team of practical strategists that is integrated within the PwC network of firms. It is a company focused on creating sustainable value by providing industry-leading products and solutions to satisfy customers construction needs across the world. Cemex Case alertservice-d.grundfos.com 2022-11-06 . It was very necessary to analyze the competitors in order to plan more effective marketing strategy. (Cemex, 2018). Then what is Teslas marketing strategy? To keep growing, we needed some larger transactions. Capabilities System. 13, 2015.). Staying ahead of the curve, 2009. The result was enormous savings in IT cost and a significant drop in the cost of administration. (2022) 'Cemex Company's Strategic Analysis'. Customer care is one of the most powerful tools of customer retention and also attracting new ones, Cemex ought to embark on enhancing customer service to ensure quick response to customers requests and inquiries. Cemex has had a huge highly skilled workforce in IT whose capacity was not fully utilized that is now being harnessed to earn additional revenue and to support the companys infrastructure. In the context of its CSR strategy, CEMEX builds "a better future, ensuring our society's sustainability, wellbeing, and quality of life" (CEMEX, 2019a: p.57). With an annual savings of $120 million in annual savings, this seems a formidable strategy for the company in its future endeavors. CEMEX also has a strong distribution network for building materials that operate under retail brand Construrama that has facilitated the efficient transfer of building materials from its production center to the end-users. For example, you might have a municipality with good tax revenue, but [leaders] dont know how to structure a project, get the permits, or make a good decision about where to put in a road, a bridge, or a public housing project. The emerging markets of Venezuela, Panama, the Dominican Republic, and Colombia present an opportunity for the company to dig deeper into the markets and earn more revenues. So, it is obvious for impoverished with very little money to not get considered a customer ever, for something like cement. When youre running a hyperlocal business like ready-mix concrete and aggregates, you cant allow that to happen. With more than eighty percent of global GDP generated in cities, urbanization can contribute to sustainable growth if managed well by increasing productivity, allowing innovation and new ideas to emerge (source: Worldbank.org). Cemex was founded by Tonia Anno for 12 years and is a real estate company that was involved in my blog real estate phenomenon and global transportation corridor for the world market. Nevertheless, Cementos Portland Monterrey commenced operations in 1920, and the two firms combined in 1931 to form . One of its latest acquisitions was Southdown of the USA which helped it boost its image in the market. Product diversification of the firm especially with the launch of Cemtec Company and the new venture to the manufacturing of construction machinery has helped the company to spread its risks besides broadening its new revenue base. CEMEX: Transforming a Basic Industry Company case study provides a strategic dilemma for the protagonist. Porter's 5 Forces, Competitive Forces & Industry Analysis. When we treat sustainability as a capability, it changes what we do about it. The core objective of strategists and leaders in an organization is to help the organization to build a sustainable competitive advantage and thwart competitive challenges. The company has almost 200 employees with an international presence. This will ensure that Cemex stamps its authority and reclaims its niche in the market as a market leader. Apple A Unique Take on Social Media Strategy. It lends itself to recipes like the CEMEX Way, which can be disseminated by a corporate center. Were constantly moving, constantly looking to be better. We are developing new products that will help in the reduction of emissions in buildings. Figure 1 VRIO Analysis. Save my name, email, and website in this browser for the next time I comment. This forced the company to develop its distribution channels to optimize revenue at a minimum cost rate. San Agustin: RMC was one of our first acquisitions of a company with businesses in multiple countries. The Foundation of CEMEXs Success In Pictures. The cement market declined by 5.4% after experiencing a 4.3% growth in the previous three years. Market Analysis and Insights: Global Cement and Aggregate Market A cement is a binder, a substance used for construction that sets, hardens, and adheres to other materials to bind them together. These companies not only had to work diligently on their marketing mix elements, i.e., product, price, place, and promotion but on their entire business model as well. Increased acquisitions could also trigger a wave of consolidation exercises among its competitors which could push the company out of the specific market. So we have said each business must recapture transport dollars. As I said earlier, these efforts will have to be guided by cost-minimizing framework that will be ensuring that the accruing benefits are optimized.
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