Critically evaluate the expansion strategy of a computer hardware firm by analysising “the Cemex Way”.
In a rapidly changing and challenging global business environment, in order to maximize the optimization and meet current market dynamics, it is good for a computer hardware firm to exam some previous strategies from other enterprises before launching a successful expansion plan. There are a lot of global companies with very successful expansion strategies which are worth to summarize such as the famous “Cemex way” which will be discuss in this paper.
This paper is divided into two main parts: Firstly, due to a number of discussion about the extension strategy of Cemex, PESTLE analysis will be used to summarize the core strategy of “the Cemex …show more content…
Political —— standardization and developing countries oriented
Although the core values of Cemex are “sustainability, excellence and innovation” (官网上说的，不是我说的), the successful implementation of standardization ensures the smooth expansion of Cemex in the International market. Indeed, standardization is a strong foundation which will preserve the Cemex lose itself in the process of expansion. Standardization provides a orientation to all superior products and services including design, production and promotion which enables people from every corner of the world can access. For instance, as part of the standardization, automation such as automatic quality control, laser analyze and data sampling can significantly increase the production efficiency, then reduce the number and cost of staff …show more content…
Although outsourcing may increase the budget of cost in the short term, but it will make the company gain more profit and save cost in the long run. As a good example, Cemex claims (官网) a new 10-year strategic outsourcing agreement with IBM which about US$ 1 billion is anticipated to be saved in the long run. It is interesting that the informatization in “the Cemex Way” is based on the high popularization of low-end computers in Cemex (搞笑), however, IBM has sold its low-end computers in 2004 and claimed to concentrate on high-end computers (微软收购IBM), which means Cemex has been changing its strategy to higher level in order to fit the latest market
In a rapidly changing and challenging global business environment, in order to maximize the optimization and meet current market dynamics, it is good for a computer hardware firm to exam some previous strategies from other enterprises before launching a successful expansion plan. There are a lot of global companies with very successful expansion strategies which are worth to summarize such as the famous “Cemex way” which will be discuss in this paper.
This paper is divided into two main parts: Firstly, due to a number of discussion about the extension strategy of Cemex, PESTLE analysis will be used to summarize the core strategy of “the Cemex …show more content…
Political —— standardization and developing countries oriented
Although the core values of Cemex are “sustainability, excellence and innovation” (官网上说的，不是我说的), the successful implementation of standardization ensures the smooth expansion of Cemex in the International market. Indeed, standardization is a strong foundation which will preserve the Cemex lose itself in the process of expansion. Standardization provides a orientation to all superior products and services including design, production and promotion which enables people from every corner of the world can access. For instance, as part of the standardization, automation such as automatic quality control, laser analyze and data sampling can significantly increase the production efficiency, then reduce the number and cost of staff …show more content…
Although outsourcing may increase the budget of cost in the short term, but it will make the company gain more profit and save cost in the long run. As a good example, Cemex claims (官网) a new 10-year strategic outsourcing agreement with IBM which about US$ 1 billion is anticipated to be saved in the long run. It is interesting that the informatization in “the Cemex Way” is based on the high popularization of low-end computers in Cemex (搞笑), however, IBM has sold its low-end computers in 2004 and claimed to concentrate on high-end computers (微软收购IBM), which means Cemex has been changing its strategy to higher level in order to fit the latest market