swift international expansion and transformation of Cemex‚ an emerging multinational from Mexico‚ into a Global Latina that has consolidated its position throughout its ’natural markets’ to become the world’s biggest building materials multinational. It provides an example of growth through acquisitions and shows how an emerging multinational conquers the world. The general objective is to study the growth and internationalisation strategies of Cemex with a special focus on: (1) international expansion
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CEMEX: TRANSFORMING A BASIC INDUSTRY COMPANY Case Study Questions 1. How is CEMEX Mexico providing added value to its customers? R: As cement is a commodity market‚ CEMEX realized that they should provide added value by developing customer services and offering solutions for the needs/wants of their customers. See Appendix 1: CEMEX - Customer Services 2. How has CEMEX developed and leveraged its strengths to enhance its market position and profitability? R: The Company was extremely
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. Cemex has a stronger preference for acquisition over greenfield ventures as an entry mode. Why? Cemex believed that it could create significant value by acquiring inefficient cement companies in other markets and transferring it skills in customer service marketing information and technology and production management to those units . Also they want to be a unique company in worlwide. Therefore they need to purchase all the competitor companies and converted their sysytem to them. d.Why do
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to be the competitive advantage if CEMEX. Continued innovation High level of commitment to customer service and satisfaction Proven post-merger integration expertise (PMI) Efficient production‚ distribution and delivery processes through information system Ability to identify opportunities in developing countries CEMEX is one of the world’s largest building materials suppliers and cement producers. Founded in Mexico in 1906. They supply cement to CEMEX has operations extending throughout
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5‚ 2009 CEMEX: Globalization “The CEMEX Way” Donald R. Lessard and Cate Reavis When one wants to globalize a company‚ especially when it is from a developing country like Mexico‚ you really need to apply more advanced management techniques to do things better. We have seen many cement companies that use their capital to acquire other companies but without making the effort to have a common culture or common processes‚ they get stagnant. 1 —Lorenzo Zambrano‚ Chairman and CEO CEMEX On June 7
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11/1/2013 OREIGN Learning Objectives IRECT • Examine how FDI is implemented in different types • Identify the factors that influence FDI • Understand why and how host government encourage FDI inflow NVESTMENT 1 2 1 FDI occurs when a firm invests directly in facilities to produce and/or market a product in a foreign country 2 3 4 3 4 1 11/1/2013 5 2 11/1/2013 – Investment in the “same” industry – Nokia & Samsung build factories in Bac Ninh
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influential analytical model for assessing the nature of competition in an industry is Michael Porter’s Five Forces Model‚ which is described below: Michael Porter described a concept that has become known as the "five forces model" to help understand how competition affects your business. Porter’s 5 forces analysis is a framework for industry analysis and business strategy development developed by Michael E. Porter in 1979 of Harvard Business School. It uses concepts developed in Industrial Organization
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CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX’s position in the global cement industry? First‚ the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus‚ the expansion of the scale of the company is very critical to enhance the competitiveness‚ especially the international expansion to different
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Most discussions of the competitive success of nations look at aggregate‚ economy-wide measures like the balance of trade. Porter chose a different starting point‚ beginning with individual industries and competitors and building up to the economy as a whole. Nations do not compete in the marketplace—business firms do‚ and the performance of individual companies in particular industries in where competitive advantage is either won or lost. The home nation influences the ability of its firms to succeed
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In Michael Porter’s article about The Five Competitive Forces that Shape Strategy‚ he identifies the five forces that shape industry competition as: threat of new entrants‚ bargaining power of buyers‚ threat of substitute products or services‚ bargaining power of suppliers‚ and rivalry among existing competitors. Then he breaks each of these down even further‚ giving information about the factors that should be considered when making assessments in each of these areas. The main underlying purpose
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