CEMEX Transforming a Basic Industry Company Hau Lee David W Hoyt 2005 Case Study Solution

CEMEX Transforming a Basic Industry Company Hau Lee David W Hoyt 2005

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I once read a news article about CEMEX, an iconic company in the basic industries sector, that had transformed itself in a remarkably short period by making fundamental changes in its business processes, culture, and strategic direction. This case study is the story of how CEMEX became the dominant market player in its sector. The article described CEMEX as “a giant that had become a force to be reckoned with”. This is no exaggeration. CEMEX had been a relatively obscure company during its inception, but it was quickly taking over

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“As CEMEX’s ‘new way’ of expanding its market into new markets and new products becomes more apparent, I am struck by how CEMEX is transforming itself from a basic industry company into a global, diversified, and profitable conglomerate. The first, and most obvious transformation has been the growth of CEMEX into one of the largest suppliers of cement in the world, a company that is not only a key player in the global cement industry but also a leading player in the construction industry globally. As a result

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In the early 1990s, CEMEX (now a major international building materials company) became a world leader by transforming the basic industry company in its entirety. The strategy had to be so extreme that it would not have worked at any stage in the past and would be unthinkable today. What was CEMEX’s transformation strategy? The strategy consisted in six elements: 1. why not check here Focus on profit maximization (FPM) CEMEX developed FPM as its core competence, creating a competitive advantage in the

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CEMEX transformed a basic industry company in two distinct and different ways. recommended you read In the first, CEMEX transformed from a simple cement company into a high-tech, industrialized corporation with competencies in building materials, construction, and transportation. The corporation developed an industry-unique “technology platform,” a set of integrated technologies, products, and services used to build complex, industrialized buildings and other construction projects, often used by major international players. This technology platform was acquired from the European cement manufacturer Lafarge and applied at CEMEX’s

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Throughout history, basic industries have been the backbone of a country’s economy. These industries are fundamental to a nation’s infrastructure and the way of life for its people. Yet, when we look to the future of the world, we must understand the transformational changes these industries undergo when faced with new business models, emerging technologies and societal shifts. In his book, CEMEX Transforming a Basic Industry Company (2005), Dr. Hau Lee and David W. Hoyt provide a comprehensive

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– CEMEX was originally founded as a concrete manufacturer, in 1858 by Félix de Neumann. – The company’s basic products were expanded to include various other building materials in the 1960s and 1970s, resulting in CEMEX’s current portfolio of 250 products. In 1992, CEMEX transformed itself into a building materials company, specializing in concrete and mortar products, as the global building market became less industrialized. – CEMEX’s ac