Introduction CEMEX is a global cement company from Mexico that dates back to 1906. It was formally established in 1931 through a merger between Cementos Hildago and Cementos Portland Monterrey. Although initially it operated on a domestic level, various factors within its operating environment forced it to expand internationally. Before venturing into other markets, the company opted to capitalize on the ideal environment created the Mexican Government. Nevertheless, the Mexico 1982 economic crisis forced the Government to liberalize the Mexican market thus attracting foreign competitors. To counter the new competition, CEMEX opted to first divest its business, which was diversified across hotel management, engineering, petrochemicals, to focus on its core cement production business. It opted to avoid a hostile take over by foreign companies through consolidating its position in the domestic Market. Acquiring Cementos Anahuac and Cementos Tolteca was a strategic move that enabled it control 60% of Mexican market, becoming the world tenth biggest cement company. Probably motivated by the success of this strategy and the new acquired competitive scale, the company opted to internationalize. Acquisition was the preferred strategy of expansion. This strategy undoubtedly yielded unprecedented success over the years. By 2004, CEMEX had grown to be the 3rd largest building material company in the world, experienced an 18% annual growth rate in sales, and enjoyed a revenue of US$ 7.1 billion, just to mention a few. Competitive Advantage Acquired by CEMEX It is as a result of acquiring distinct competitive advantages that CEMEX was able ... ... middle of paper ... .... It has used this strategy to overcome various challenges (such as avoiding hostile takeover by foreign companies) while at the same time developing competitive advantages. Examples of the competitive advantages CEMEX has enjoyed over the years include ability to operate in volatile markets, integrate successfully with its acquired firms, and easy acquisition of funds. However with its level of debt increasing increasing, CEMEX should know consider expanding through an organic growth strategy. References Hess, E. D. (2007).The road to organic growth: how great companies consistently grow from within. New York: McGraw Hill. Morgan, J. (2004). Financial Analysis Ratios: A guide to interpreting Key Financial Ratio. Investor Guides Magazine, 2, 5-23. Paul, J., & Kapoor, R. (1966). International Marketing: Text and Cases. New Delhi: McGraw Hill.
Exxon Mobil meanwhile continues to focus on core fundamental such as reduction in operating costs and capital expenditure. For instance, the company achieved approximately $11.5 billion in capital and cash operating costs reductions. Also, the company’s ongoing asset management program, yielded $5.1 billion of cash flow from operations and asset
In the recent years the drug industry underwent a significant transformation. Many of the big companies generate high revenues, which allow them to expand. Some of them expand on their own others through mergers and the buying of smaller companies.
On August 12, 1998, Citibank took full ownership and control of the medium-sized Mexican banking group, Confía, dropping the latter's name and logo from the 280 branches throughout Mexico, and from that point on operating it as part of Citibank Mexico. The road that led to this outcome was rocky to say the least, and the fit of the Mexican bank into Citicorp's global organization and strategy was quite different from what would have been expected only months earlier. This discussion describes the sequence of events involved and the ways in which the process was linked to the organizations and people involved. Before starting into the banks' situations and characteristics, an orientation to the time and place is useful.
...ll help the company in selling generic drugs and provide affordable medications to its customer base.
...s: each was licensed to a much larger firm because the originator firm lacked the capability to market the drug. the larger analysis of blockbuster drugs showed that this thread is common across blockbusters that originated with smaller firms. The largest firms appear to hold a significant advantage in commercialization—they are highly effective at extracting the value of innovative drugs . The study suggests some qualified reasons for skepticism that the end of the blockbuster era will bring a major upheaval in the industry. Large firms’ advantage in commercialization suggests that they may maintain their dominant position. Marketing of pharmaceuticals may move from broad-based to targeted approaches, but a company with a broad reach may still have an advantage in identifying markets for niche drugs and commercializing the drugs within those more narrow market
Cementos Mexicanos (CMEX) is a Mexican cement company with origins tracing back to 1906 with the opening of Cementos Hidalgo. And in 1931, it merged with Cementos Portland Monterrey, founded by Lorenzo Zambrano who becomes the CEO of CMEX. The company globalized its market internationally and became one of the largest cement companies in the
As a result, the number of foreign companies established in Mexico has risen to more than 16,000. The opportunities for investors are numerous, particularly in sectors such as automotive, electronics, information and communication technology, agribusiness, chemicals and pharmaceuticals, biotechnology, financial services, water and power generation. As part of the Mexican government’s campaign to attract FDI, the 44 overseas offices of the Mexican Bank for Foreign Trade (Bancomext) operate as trade commissions that offer advice and assistance to potential investors.
Researchers who work at Merck are also stakeholders who are affected by this decision. They could possible lose jobs if Merck does employ an open innovation strategy and finds it more successful than its current innovation strategy. However, it could also develop more for them to work with and create more success. Varying ideas may be brought which works well with current ideas set in motion my Merck researchers. With the help of external ideas, they may be able to improve or create new
There is an increasing pressure within pharmaceutical markets to reduce prices in line with medical budgets, as well as maintaining patent expirations. Being a global brand means disturbance in the operations when the market fluctuates. There is an internal weakness in the pharmaceutical industry, which includes theft and counterfeiting of drugs, and therefore is a weakness of Johnson & Johnson. While Johnson & Johnson has these specified weaknesses they deal with, there are even more opportunities which gives them an advantage for strengthening their position in the market. They already have the strength of meeting a broader range of customer needs with their products falling under three categories. Expiring patents on brand name drugs lead to an increase in the sales of generic drugs, Johnson & Johnson could capitalize upon this opportunity. With diagnostic markets growing, this positions the company in a good place as well as new medical therapies and findings that align with some of the company’s primary capabilities. Threats the company faces is with product recalls, extreme competition in pharmaceuticals that results usually in the first to enter is generally where success is determined. With technology developments, biotech concepts might possibly move the traditional pharmaceutical methods out of the
...including their expiring patents and inefficiencies in their research and development practices. In the end, Novartis has a very strong internal environment. Their strategic direction, value chain, strengths, resources, and capabilities have allowed them to grow, develop, and truly become a global leader in the pharmaceutical industry.
Competitive advantage is the advantage for the competitors and gained by the offerings from the consumers that have the greater value either by the low prices of the products and by providing the benefits and services to the consumers that denotes the high price. It is a set of the innovative and different features of the company and the products and services sale to the consumers so that company can achieve the targets what they have decided and it is the betterment for the enterprise in the competitive market (Porter, 2011). There are three determinants which can be used in the competitive advantage that what the company produce for their consumers, their target market that what they have to achieved and the competition from the other entity
ACC Limited is India’s foremost manufacturer of cement and ready mixed concrete with a countrywide network of factories and sales offices. It is amongst the first companies in India to include environmental protection as a corporate commitment. It has been considered as a pioneer and leader in cement and concrete know-how, winning awards for best practices in environment management and for demonstrating good corporate citizenship. The quality of ACC’s products and customer centric services make it the most preferred cement brand in the industry and enjoys a high degree of brand equity in the Indian market. The Indian cement industry is the 2nd largest market after China accounting for about 8% of the total global production. The Indian housing
of a firm to attain new forms of competitive advantage (Müller, 2011). It is due to these
These capabilities have made companies successful in the strategy of continuously improving products for differentiated markets.
The cement industry is one of the main beneficiaries of the infrastructure boom. With robust demand and supply, the industry has bright future. The Indian Cement Industry with total capacity of 165 million tones is the second largest after China. Cement industry is dominated by 20 companies who account for over 70% of the market. Individually no company accounts for over 12% of the market.