Case 03: Cemex Over the last two decades, Mexico’s largest cement manufacturer, Cemex, has transformed itself from a primarily Mexican operation into the second-largest cement company in the world behind Lafarge Group of France. Cemex has long been a powerhouse in Mexico and currently controls more than 60 percent of the market for cement in that country. Cemex’s domestic success has been based in large part on an obsession with efficient manufacturing and a focus on customer service that is tops in the industry. Cemex is a leader in using information technology to match production with consumer demand. The company sells ready-mixed cement that can survive for only about 90 minutes before solidifying, so precise delivery is important. But Cemex can never predict with total certainty what demand will be on any given day, week, or month. To better manage unpredictable demand patterns, Cemex developed a system of seamless information technology—including truck-mounted global positioning systems, radio transmitters, satellites, and computer hardware—that allows it to control the production and distribution of cement like no other company can, responding quickly to unanticipated changes in demand and reducing waste. The results are lower costs and superior customer service, both differentiating factors for Cemex. Cemex believed that it could create significant value by acquiring inefficient cement companies in other markets and transferring its skills in customer service, marketing, information technology, and production management to those units. The company embarked in earnest on its international expansion strategy in the 1990s. Initially, Cemex targeted other developing nations, buying established cement makers in Venezuela, Colombia, Indonesia, the Philippines, Egypt, and several other countries. It also purchased two stagnant companies in Spain and turned them around. In 2000, Cemex purchased Houston-based Southland, one of the largest cement companies in the United States, for $2.5 billion. Following the Southland take over, Cemex had 56 cement plants in 30 countries, most of which were gained through similar process. In all cases, Cemex devoted great attention to transferring its technological, management, and marketing know-how to foreign subsidiary units, thereby improving their performance. From the above case write the answer of this question. What are the different ENTRY MODE and GLOBAL MARKETPLACE STRATEGY has been used by the company at different stages of international expansion in various regions? Did they make the right choices?
Case 03: Cemex
Over the last two decades, Mexico’s largest cement manufacturer, Cemex, has transformed itself from a primarily Mexican operation into the second-largest cement company in the world behind Lafarge Group of France. Cemex has long been a powerhouse in Mexico and currently controls more than 60 percent of the market for cement in that country. Cemex’s domestic success has been based in large part on an obsession with efficient manufacturing and a focus on customer service that is tops in the industry. Cemex is a leader in using information technology to match production with consumer demand. The company sells ready-mixed cement that can survive for only about 90 minutes before solidifying, so precise delivery is important. But Cemex can never predict with total certainty what demand will be on any given day, week, or month. To better manage unpredictable demand patterns, Cemex developed a system of seamless information technology—including truck-mounted global positioning systems, radio transmitters, satellites, and computer hardware—that allows it to control the production and distribution of cement like no other company can, responding quickly to unanticipated changes in demand and reducing waste. The results are lower costs and superior customer service, both differentiating factors for Cemex. Cemex believed that it could create significant value by acquiring inefficient cement companies in other markets and transferring its skills in customer service, marketing, information technology, and production management to those units. The company embarked in earnest on its international expansion strategy in the 1990s. Initially, Cemex targeted other developing nations, buying established cement makers in Venezuela, Colombia, Indonesia, the Philippines, Egypt, and several other countries. It also purchased two stagnant companies in Spain and turned them around. In 2000, Cemex purchased Houston-based Southland, one of the largest cement companies in the United States, for $2.5 billion. Following the Southland take over, Cemex had 56 cement plants in 30 countries, most of which were gained through similar process. In all cases, Cemex devoted great attention to transferring its technological, management, and marketing know-how to foreign subsidiary units, thereby improving their performance.
From the above case write the answer of this question. What are the different ENTRY MODE and GLOBAL MARKETPLACE STRATEGY has been used by the company at different stages of international expansion in various regions? Did they make the right choices?
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