That gave us some big advantages. The conventional network of distributors is a sort of a linchpin to tap the retail demand for cement. And our common technology platform would make us more productive. Change your questioning habits. That is a global best practice. The greatest strength of Cemex lies in its ability to integrate information technology with the best management practices within its organizational framework. In the early 1990s, Mexico had very high inflation. The threats in the SWOT Analysis of Cemex are as mentioned: 1.Cemex faces strong competition from Regional and National Brands. The segment was relatively virgin and could become an engine for growth in the future. Karl Watson Jr.: Cement is a powder made from limestone and other ingredients, used in the production of concrete and masonry. Building on its long track record in lean operations (ruthless operating efficiency is a catchphrase within the company) and its pride in being one of the most successful companies from an emerging market, CEMEX developed a high level of customer responsiveness. The rapid expansionary strategy could also pose a challenge to the financial position of the company and also cause bottlenecks in management. Why? Because we had such a high cost of capital, the only way to keep on growing through M&A was to extract a lot of value quickly. Today's cement plant. This future is not far off. A version of this article appeared in the Summer 2015 issue of strategy+business. You could do all that stuff manually, with an email to a colleague. 9) observes. 1. In most places, the business of providing these materials is capital-intensive and cyclical. Corporate strategy - Global EV Outlook 2023 - Analysis - IEA CEMEX recovered only when the economy in its markets began to rebound. This was aimed at repositioning itself in the market amidst building competition as a result of new entrants in the Mexican market. One of the most challenging tasks for Cemex was its entry into the Philippines market due to a lack of control of distribution channels by distributors. To use the same example, they would sell the product for $60 but charge freight of $250 per load (this would increase based on distance from the originating plant) no matter how full the truck was. The potential of this colossal low income relatively unserved market was also accompanied by its own set of challenges. Their growth in demand for cement has been registering a consistent high of 7% with India alone representing a demand of 600 million tones of cement in 2006. The personal visits of architects to customer locations created a great deal of trust in the low-income society. The most surprising finding of this analysis is that CEMEX succeeded in the global industry following the international strategy when referring only to basic factors according . Having that speed and efficiency allowed us to be an acquirer as opposed to being one of the companies that got acquired. In this roundtable discussion, six CEMEX leaders, all interviewed at company headquarters in Monterrey, Mexico, talk about the companys capabilities system, how it developed, and the value that it has provided.
