Cemex Case Study Coursework Example | Topics and Well Written Essays - 1000 words

Cemex Case Study - Coursework ExampleIn scathe of merchandises, the developing countries of China and India whitethorn be seen as some of most important receivable to large scale cement consumption and production fuelled by large scale economic growth (OECD 2010, 2009). It may be expected that in hereafter years as wealth becomes higher per capita in these markets, that demand begins to fall to levels seen in the unquestionable world. In addition, the nature of products consumed in developing markets also varies from those of the developed world. Here there is a preference for pre-bagged building materials as opposed to bulk delivery, a trend which is reversed in developed markets. 2. In terms of global capacity, Cemex ranks as third with a capacity of 64.7 million tons, this compares to market leader Lafarges capacity of 108 million tons and Taiheiyo in sixth entrust at 37.9 million tons. Despite the capacity of the company, Cemex ranks as number one by market share in 9 of it s key 13 markets and routine in anther three. As such, Cemexs overall capacity lags behind the total demand for the companys products reservation the company a global sourcer. ... This however, may be seen as linked to the unique characteristics of such markets which have a propensity to favour local or national producers over the large international players such as Cemex. As such, despite being a global player, Cemex may still be seen as lacking a substantial heraldic bearing in key regional markets in both Asia and Africa. 3. Overall, it would egress that Cemex after the current round of acquisitions is now a broad player within the market for building products, while the firm had previously focused on cement (Jobber, 2007). Recent acquisitions has seen the company moving into both the aggregates and ready mixed concrete market. With regards to Cemexs generic strategy, it would appear that the company follows a cost leadership model (Porter, 2004). This can be seen in the so called Cemex way in which on making an acquisition the company attempts to implement a two way process of rationalisation taking the best and most cost effective practises from both the kick upstairs company and the acquisitioned company and then implementing the most cost effective. There is however, one area in which Cemex may be seen as developing a tell strategy. In the market for bagged cements, Cemex was the first producer to developed a branded option, thus making the product more attractive in the lucrative shoes build market segment. In addition, the company also makes small local changes to the produce based upon customer perceptions of quality. For instance while the Egyptian market shows a preference for darker colours cements, Cemexs home markets in South America require a lighter coloured product. Despite this attempt to differentiate the product, it would appear that the market as a whole is