The threats in the SWOT Analysis of Cemex are as mentioned: 1.Cemex faces strong competition from Regional and National Brands. The government infrastructural demand continues to buoy the demand though. One of its latest acquisitions was Southdown of the USA which helped it boost its image in the market. Its major competitors are mainly Lafarge from France and Holcim from Switzerland. Internal analysis. The firm may have to cut down production to reduce the piling inventory in its warehouses thus reducing the cost of storage. CEMEX, by far the most profitable of the multinationals in the cement industry, seemed like the ideal case to study to understand this anomaly. The five stages of Marketing Strategy Process of Cemex Superior are -. This has given rise to an urgent desire to develop an aggressive promotional campaign through product branding and advertising in various media that is growing to near combatant levels. Step 1 - Defining relevant industry for Cement Cemex in casestudy. That took some doing. Thats when you have your best chance and I mean this in the most positive sense of getting into peoples heads. Nike has built one of the most powerful brands in the world through its benefit based marketing strategy. Analyze the Cemex Superior external competitive environment to identify opportunities and threats. Juan Pablo San Agustin: In 1992, two years before NAFTA went into effect, we made our first international acquisitions, buying two cement companies in Spain. But we believed that having that information readily available would increase the likelihood that managers would make the right decisions. %PDF-1.3 Strategic Analysis of Cemex Harvard Case Solution & Analysis That was the beginning of recognition on CEMEXs part of the importance of global collaboration and knowledge sharing. Headed by Francisco Garza Zambrano and a consulting team from Business Design Associates, CEMEX performed in-depth market research, which provided key insights into serving this segment profitably. Why does Teslas Zero Dollar Budget Marketing Strategy work? Despite the expansionary moves undertaken, Cemex continues to rely heavily on the Latin market with about 68% of its global sales coming from the Latin market. December 13, 2022. https://business-essay.com/cemex-companys-strategic-analysis/. CEMEXs growing global presence allowed it to raise capital at low rates and to gain leverage through its overseas presence and relationships. Elizondo: We became quite adept at that. The current strategy however poses a risk of inhibiting innovations as a result of the standardization of systems. Lee, Hau and Hoyt, David, W. CEMEX: Transforming a Basic Industry Company, 2005. 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. Cemex Company's Strategic Analysis | Business Paper Example New name, lets move on. Today, one of the major differences is all the time and effort we dedicate to change management. Type above and press Enter to search. Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. When we introduced it in 2001, about 70 percent of CEMEXs bagged cement sales in Mexico went through individual distributors. This capability gives CEMEX the information it needs to bring acquired companies on board rapidly and continueincreasing its knowledge base. . We acquired a Spanish cement company that had begun to use petroleum coke (or pet coke), a by-product of refining petroleum that ordinarily emits a lot of carbon dioxide. The first three months are key. This article was developed as part of the Strategy& Capable Company Research Project, aligned with the forthcoming book. These calls for urgent mitigating measures to arrest the drastic fall in revenue which if not checked might lead to the closure of some factories reversing the gains that have been made so far. How do you interact with customers? This prompted the company to diversify into IT by setting up Cemtec to provide in-house IT services. CEMEX delivers its way to playby excelling at five differentiating capabilities: Industry-leading operational effectiveness, continuously improving its manufacturing, logistics, and financial effectiveness a critical capability in managing and moving building materials. The part of RMC that was in Germany was particularly advanced; approximately 50 percent of its fuel use came from alternative sources. We changed old habits; for instance, in the past our people were not prepared to interact with our communities or with the media. The segment was relatively virgin and could become an engine for growth in the future. For more details on Cemex Solar PV Park, buy the profile here.. About Cemex SAB de CV Cemex SAB de CV is a manufacturer of building materials.It manufactures and sells cement, ready-mix concrete, aggregates, clinker, and related building materials.
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