1. What benefits have CEMEX and other global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement?
CEMEX and other global competitors in the cement market have definitely benefitted by being able to operate on an international level. An obvious advantage that CEMEX and quite frankly any vast corporation that reaches a global scale is diversification. Diversification has brought and brings opportunity reduce the risk of relying on one single source of income. CEMEX knew they had a great deal of competition in the market, and needed to gain competitive advantage. I believe CEMEXs’ approach to international expansion reflects the internalization …show more content…
Allowing research to be conducted and decision making to be done. Once CEMEX had boots on the ground they had a team call PMI (Post-Merger integration). The teams’ purpose was to test the efficiency and introduce CEMEX culture.
Once CEMEX had everything in order and running proficiently in all these countries, they had gained competitive advantage in 2000 and had revenue streams all over the globe. CEMEX reduced the risk of trusting on one source of income by going global and reduced costs at the same time. CEMEX had placed manufactures all over the globe, exporting cost lowered because CEMEX began producing cement locally, equally becoming another benefit of …show more content…
Since Zambrano had invested in IT earlier on, this allowed CEMEX to have strong foundation with technology. When CEMEX began to expand they were familiar with the best ways to communicate, they already had their own private network in 1988.
With any type of relationship being personal or professional communication is crucial. How CEMEX was able to differ from Holderbank and similar competitors in the market was how communication was executed. CEMEX tried to cut as much as middle man as possible. Mentioned in the article “One key difference was that country-level managers at CEMEX reported directly to regional directors…” (Ghemawat,12). Competitors on the other hand had managers in between regional directors and country level managers. Moreover, CEMEX executives, CEO, all regional directors and country presidents met every month.
As for the exhibits 4-8 they illustrate CEMEX knew how to spend their money, where to spend, and how much to spend. Mostly other competitors are very close in locations but CEMEX is set apart and the numbers support it.
3. What accounts for the sequence in which CEMEX entered foreign markets? How do the markets it has entered recently compare with the markets that it entered early
CEMEX and other global competitors in the cement market have definitely benefitted by being able to operate on an international level. An obvious advantage that CEMEX and quite frankly any vast corporation that reaches a global scale is diversification. Diversification has brought and brings opportunity reduce the risk of relying on one single source of income. CEMEX knew they had a great deal of competition in the market, and needed to gain competitive advantage. I believe CEMEXs’ approach to international expansion reflects the internalization …show more content…
Allowing research to be conducted and decision making to be done. Once CEMEX had boots on the ground they had a team call PMI (Post-Merger integration). The teams’ purpose was to test the efficiency and introduce CEMEX culture.
Once CEMEX had everything in order and running proficiently in all these countries, they had gained competitive advantage in 2000 and had revenue streams all over the globe. CEMEX reduced the risk of trusting on one source of income by going global and reduced costs at the same time. CEMEX had placed manufactures all over the globe, exporting cost lowered because CEMEX began producing cement locally, equally becoming another benefit of …show more content…
Since Zambrano had invested in IT earlier on, this allowed CEMEX to have strong foundation with technology. When CEMEX began to expand they were familiar with the best ways to communicate, they already had their own private network in 1988.
With any type of relationship being personal or professional communication is crucial. How CEMEX was able to differ from Holderbank and similar competitors in the market was how communication was executed. CEMEX tried to cut as much as middle man as possible. Mentioned in the article “One key difference was that country-level managers at CEMEX reported directly to regional directors…” (Ghemawat,12). Competitors on the other hand had managers in between regional directors and country level managers. Moreover, CEMEX executives, CEO, all regional directors and country presidents met every month.
As for the exhibits 4-8 they illustrate CEMEX knew how to spend their money, where to spend, and how much to spend. Mostly other competitors are very close in locations but CEMEX is set apart and the numbers support it.
3. What accounts for the sequence in which CEMEX entered foreign markets? How do the markets it has entered recently compare with the markets that it entered early