| 
  • If you are citizen of an European Union member nation, you may not use this service unless you are at least 16 years old.

  • Stop wasting time looking for files and revisions. Connect your Gmail, DriveDropbox, and Slack accounts and in less than 2 minutes, Dokkio will automatically organize all your file attachments. Learn more and claim your free account.

View
 

Cemex

Page history last edited by PBworks 12 years, 4 months ago

Cemex (Mexico): A Mexican producer of cement, run by a team of technical people who aren't afraid to operate in the developing world. The popular view in US 10 years ago: high-fixed cost, low-return cyclical resource company. counterview: one of the most dynamic, innovative, investor-friendly companies in the world.

 

On November 26, 2002, Cemex was trading for a split-adjusted $9.80. Recently, it closed at $32.32. That's a 229% gain, turning an original $5,000 investment into $16,500

 

 

Strategy - International

 

 

Staying below the radar, and focusing on a niche market that more powerful global companies may be ignoring are good strategies to consider when competing against a stronger global leader. The book “Transnational management” focused on companies such as Dell, Cemex and Electrolux that successfully followed this strategy to international success. The key to this strategy is to focus just on one niche market, but to develop multiple layers of competitive advantages in that product or service. A company may start out as an OEM supplier to more powerful international companies, or they may focus on serving industries that established leaders consider insignificant. The goal is to develop strength and infrastructure. Then, when the company is ready, they should move quickly to expand with its own brand and challenge quickly. This was seen in the BSkyB case when Sky chose to enter the satellite TV market which BBC considered to be a peripheral market that it was not interested in. By staying under the radar, they were able to build on their strengths and eventually challenge BBC for mainstream viewers (and ad dollars)

Comments (0)

You don't have permission to comment on this page.