Every year the average family uses one tonne of cement without even knowing it. Moreover, CEMEX still has higher chances of succeeding in its foreign operations owing to the fact the overseas locations definitely provide a healthy ground for marketing its products. What are the sources of competitive advantage in the cement industry? This essay on CEMEX was written and submitted by your fellow student. 2020. Although, the firm is seeking for ways and means of becoming a global leader in cement manufacturing and marketing, this initiative may be hampered by both local and international barriers to trade as well as government policies and cultural values in some regions. Identify and assess the main environmental risks confronting him in the late 1990s, explaining which module theories and frameworks you have found most useful to support this analysis. Firstly, the prevailing economic and political factor that may affect the process of exporting goods and services from the host country especially in the case of indirect marketing is important. The more the country is developing, the more the factors have stronger effect on aging population and the age population. Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 100 case studies. Subscribe for free and read the rest of this case study. Retrieved from https://ivypanda.com/essays/case-study-of-cemex/. The countervailing duty of 58 percent imposed by United States International Trade Commission is meant to prohibit any import trade that may jeopardize local producers. For instance, CEMEX may not be in a position to import high skilled and affordable labour to the domestic market owing to economic and political barriers at hand. To begin with, the firm set up a satellite communication disk that would be used to connect the various affiliate firms within Mexico with lots of ease. In particular, the construction industry is not doing well either. Through its highly capable management, CEMEX folded the possession of its assets that did not belong to Mexico and thereafter financed all the newly acquired business. Usually, a team or groups of people familiar with the process are assigned a company to examine. CASE STUDY CEMEX (A):BUILDING A GLOBAL LATINA MASTER IN BUSINESS ADMINISTRATION 2014 MANAGERIAL FINANCE (FIN 745) ANALYZING CASE STUDY CEMEX (A) : BUILDING A GLOBAL LATINA Prepared by: FARAH NADIAH IBRAHIM 2013812912 Prepared for: DR NIK NAZIMAN pg. The reasons for its multinational success fit very well with the advantages stressed in the eclectic approach. de C.V. – Internal Strategic Factors . You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. The building industry which is also the sole buyer of cement and its products will be mainly interested in both performance or service delivery as well as the price of the commodity. We will write a custom Essay on CEMEX specifically for you for only $16.05 $11/page. research in marketing Case Analysis Of CEMEX. In May 2000, CEMEX was preparing to expand in Asia, Africa and the Middle East. Processes of a Nonetheless, the US economy is not performing well since it is experiencing a serious downturn. teaching device. Towards the end of 1997 and before the close of that decade, CEMEX acquired two Filipino cement manufacturing companies namely APO and Rizal. "CEMEX." Cemex has close to 40,000+ employees worldwide 3. It started its journey two years ago, evolving from a traditional brick-and-mortar business model to a digital one where customer-centricity is the dominant factor over product-centricity. June 2012 Using module theory and evidence from the CEMEX case study, critically evaluate his chances of success. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies. This paper offers exploratory insights into the ways in which environmental factors influence the internationalisation of a new low-technology firm, CHAPTER 1 To be specific, the sources of competitive advantage in the cement industry may include information systems, patents, customer base, reputation, waste heat, access to emerging markets, and the propriety know-how, etc. Before the start of 1990s, the firm had already established its own private network through which all data and voice calls in and out of company would be channeled. By doing so, CEMEX can reach a large number of consumers in a timely manner. Earlier on, the management of CEMEX noted that the earnings of the company had reduced significantly due to geographical diversification. Worse still, the company also realized that only the emerging markets in African and Asia could support the six major market rivals. Resource-based strategic analysis is based on the assumption that strategic resources can provide Cemex Superior an opportunity to build a sustainable competitive advantage over its rivals in the industry. Analyzing its past successes will help inform the company if the capabilities that have served CEMEX so well in the past are likely to continue to be a source of competitive advantage for at least another ... advantage. New York and London: McGraw-Hill/Irwin. This is indeed one of the pitfalls CEMEX had to go through while investing abroad. For full functionality of this site it is necessary to enable JavaScript. Nonetheless, CEMEX can counter such a move by making sure that its competitive advantage edge is based on effective and efficient management of the available resources so that the cost of overheads is reduced (Ghemawat & Hout, 2008). What is CEMEX's position in the global cement industry? - Due to internationalization these companies have been able to spread their risk. The case study revolves around Cemex, a leading cement manufacturer headquartered in Mexico and having a presence in more than 50 countries globally. 9713 HC Groningen Moreover, CEMEX employees were also taken through capacity building and training programs on ICT so that they could be able to understand, interpret and manage data effectively. Chad Perry (2020, July 3). As he notes, CEMEX is looking forward to control at least 25 percent of the global market or better still maintain the global leadership in cement production and marketing (Bartlett, Ghoshal & Beamish, 2008). In any case, both direct and indirect can be used to carry out FDI. It will allow CEMEXto enter into new markets that will enable it to hedge the risk due to high market competition. Case Analysis Of CEMEX. Therefore, if one market is not performing they can rely on the other (diversification) Firstly, Lorenzo Zambrano opted to invest in the southern United States. C a s e s t u d i e s a re f a m i l i a r t o m a rke t i n g e d u c a t o r s a n d t h e i r s t u d e n t s a s a Although the firm uses English as the language of communication, there were some instances when there was communication breakdown since the spoken language in host country is not English. Secondly, the CEMEX management should establish in advance whether there is cultural compatibility between the host country and the cement manufacturing traditions. The database is updated daily, so anyone can easily find a relevant essay example. Hence, between the periods of 1994 to 1997, the cash flow in terms of standard deviation had reduced to a mean of about 7 percent down from 9.5 percent in the domestic market. Bartlett, C.A., Ghoshal, S. & Beamish, P.W. methodology for postgraduate If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. Although China was considered to be a fertile ground for investment due to its large population, the key limiting factor was that most of China’s cement production is carried out in small scale holdings (about 75 percent) (Bartlett, Ghoshal & Beamish, 2008). $35.80 for a 2-page paper. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Globalization of CEMEX operates in. Empire-building? As a result of ICT development, Zambrano and his management team could access information easily and readily and make relevant decisions expeditiously. It is vital to note that skilled and unskilled labour or advances in technology may markedly escalate the cost of production at the domestic level therefore leading to low returns. July 3, 2020. https://ivypanda.com/essays/case-study-of-cemex/. This allows them to optimize mining, packaging, and distribution channels (CEMEX, 2018). CEMEX standardized business processes, technology, and organizational structure across all countries while simultaneously granting countries certain operational flexibility. Matching competitors? University of Groningen You are free to use it for research and reference purposes in order to write your own paper; however, you must. However, the expansion process was to be done with due care based on past experiences so as to minimize the chances of failure. Such kind of response during economic peril is indeed necessary to sustain the operations of a firm engaging in foreign investment. 7 85 Need a custom Essay sample written from scratch by Empirical based research has conclusively established that the desire to seek resources is one of the driving motives why a firm would engage itself in Foreign Direct Investment (Ghemawat, 2005). From a personal perspective, Zambrano embraced and emphasized the use of Information Technology at CEMEX. According to market seeking theory in Foreign Direct Investment, a foreign market may be more appealing to a firm than the domestic one. U n ive rsi ty of Sou the r n Q ueensl a nd, Toowoomba , A ust r a l i a Case study: Paul is 10 years old. As mentioned earlier, CEMEX attempted to avail cheap cement from Mexico to United States in a bid to gain competitive advantage. He will be starting secondary school in a month’s time. As mentioned earlier, CEMEX attempted to avail cheap cement from Mexico to United States in a bid to gain competitive advantage. This characteristic way of exploiting the host country be seeking other adjacent marketing opportunities can also be classified as export-platform Foreign Direct Investment. Alternative: 1- Cemex should diversify into new markets by entering into different sectors.E: g Cement Service Sector. Experiences matter by PwC. For example, it was possible to get access of sales data on a daily basis based on the geographical location as well as the product line. CEMEX also acquires companies to extend its market coverage all over the world and it is successful because of its post merger integration and their CEMEX way. More broadly, how can cross-border activities add value in an industry as apparently localized as cement? "CEMEX." In order to beat this growing competition both for domestic and foreign markets, CEMEX is shrewd in its management programs in the expansion process. Has Cemex … Other components that can be analyzed using this tool include the political and socio-cultural differences of the host country, the legal aspects affecting international trade as well as the general environmental factors. Cemexs global strategy Cemex has increased the upside for a global strategy Developed intangibles that apply across countries and create rationale for its global strategy (e.g., managerial processes and innovation) Cemex has limited the downside for a global strategy Entered more similar countries first (CAGE), lowering the risks created by differences across countries How far can Cemexs competitive advantage travel? (06)58967820 Cemex offers aggregates composed of crushed stone and manufactured sand, gravel, sand, and recycled concrete (“Aggregates”). Market rivals such as Hoderbank and Lafarge are indeed the main challenge to CEMEX as the latter seeks to lead while others follow. Case 1 CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. For instance, the speed of delivery at the site which stood at 20 minutes only was phenomenon of CEMEX and it earned the company a reputation that could not be matched by any of its close competitors. In the first scenario, the host country is used as the ground for exploiting the available market. Pros: This will allow the company to expand its market share into different market. Besides, the company developed a Master of Business Administration (MBA) program that could be learnt on a virtual environment. Nevertheless, you may always look for case study help from us. During the same period, the suppliers and distributors of CEMEX products were also linked through the international network, commonly known as the internet. Hence, the absence of adequate commercial production of cement would prove to be economically unsustainable for CEMEX. CEMEX is a Mexican company that has become a major international competitor in cement while maintaining a higher level of profitability than other, longer-established majors. For instance, well documented research has concluded that acquisitions have a very high rate of failure. "CEMEX." Alvesson (1996, p.456) wrote “…much qualitative research is as superficial as questionnaire studies.” Case research has, unfortunately, been used as an excuse for “industrial tourism”—visiting, Environmental factors influencing the internationalisation of a new venture in the German pork industry: A case study A company may be prompted to secure its investment abroad since the domestic ground is either too costly or lacks the relevant factors of production. For example, the Harvard Business School’s cases are widely Please subscribe to the SustainCase Newsletter to keep up to date with the latest sustainability news and gain access to over 100 case studies. Cemex Case Study ...CEMEX – Sustainable performance in the construction industry -- a case study Introduction Cement was invented in England in 1824 and is a key ingredient in concrete. Weakness of CEMEX, S.A.B. When seeking foreign markets through acquisitions, CEMEX will have to put in mind two important considerations. Other expansion ventures in foreign locations have also been marred with challenges. M3 Assess strategies and methods used to minimize the harm to children, young people and their families where abuse is confirmed. Abstract Capabilities System CEMEX delivers its way to play by excelling at five differentiating capabilities: These differences may range from imposed trade barriers and tarrifs to customs or prevailing economic conditions. Ghemawat, P. & Hout, T. (2008). In a bid to complete the ICT needs of the company, Cemtec was established which eased down the process of installing hardware as well as software development. 1. The Trend of Chinese Demand on Copper, Glass, Cement and Oil, Preventing Occurrence of an Oil Spill in the Gulf of Mexico, The Rise and fall of Canadian Tire's Web Site, Toyota Motors the Largest Carmaker in the World: A Testament to the Impact of Globalisation. - Ability to identify new emerging markets and having, ideas and theories of M&As are mainly from the research by Ghemawat and Ghadar (2000). Nonetheless, this form of Foreign Direct Investment is underpinned by one main challenge in the sense that the marketing points being targeted in the foreign country may not be compatible with the location where FDI is to be undertaken (Ghemawat, 2005). The course content was made possible through the collaboration of the firm and Monterrey Tech. ... One of the pillars of our business strat egy is to Value Our People as Our Main Competitive Advantage. One reason for this reluctance to adopt AR can be attributed to the lack of rigor in some of the previously published works. At a macro level like in the case of CEMEX, there are helpful tools that can be used to understand the environmental risks associated with expansion abroad. The company is vertically integrated in the cement industry. Globalization Of Cemex Opportunity is an advantage and the driving force for an organization. To sustain a global competitive advantage, companies must enhance and renew their core capabilities. Besides, the complementary studies from (Sebenius 1998 and Inkpen 2000), added a different views and theories for M&As process. Resource-based strategic analysis is based on the assumption that strategic resources can provide Cemex Superior an opportunity to build a sustainable competitive advantage over its rivals in the industry. Step 7 - Organizing & Prioritizing the Analysis into Globalization of CEMEX Case Study Solution. This basically means the ability to meet the needs and concerns of consumers by delivering competitive services compared to competitors. Answer: The sources of competitive advantage in the cement industry come mostly from resources and capabilities, etc. CEMEX is a cement company. 3. Case Study On Cemex Group 2015 Words | 9 Pages. The chances for success are very tricky and unless the company develops a blended approach in its expansion bid, the future may as well be bleak. We utilize security vendors that protect and VRIO analysis of Cemex Superior is a resource oriented analysis using the details provided in the Globalization of CEMEX case study.