Académique Documents
Professionnel Documents
Culture Documents
Bharathwaj Mohan
LT 7A
Company Background
CEMEX is founded in 1906 with the opening of the Cementos Hidalgo plant
in northern Mexico.
Annual sales US$ 5.14 billion, Production Capacity 96M tons
One of the leaders in each of our core businesses:
cement, aggregates, and ready-mix concrete
Presence in more than 50 countries across the Americas, Europe, Africa,
the Middle East and Asia
Trade relationships in more than 100 nations and one of the worlds top
traders of cement and clinker
Product Background
Cement was made by adding crushed volcanic ash to lime and was later
called a "pozzolanic" cement
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Target Market
Informal
For
mal
Revenue
per
customer
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PEST Factors
Political
Government controls the price of the cement.
The consumption of cement for infrastructure projects like buildings and roads.
Economic
Currently there is boom in the industry.
Favorable for the export segment of the industry as the number of infrastructure projects across nations
is increasing.
Social
Cement is the basic ingredient for construction of house which reflects the social status of an individual.
Cement industry has both organized and unorganized sector.
Technological
From mining to storage, the process is highly dependant on technology.
Decrease the thermal energy consumption, electrical energy consumption, cost of production of cement
and energy cost.
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Threat of New
Entrants (High)
Bargaining
Power of
Suppliers (Low)
Among existing
players
Bargaining Power
of Buyer (Low)
Threat of
Substitute
products (Low)
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Strategic Maps 1
CM
Holcim
Lafarge
Delivery M
L
L
Brand Equity
Conclusion: CEMEX has a better delivery but their brand equity is medium.
Market share depends more on brand equity.
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Strategic Maps 2
H
Holcim
CM
Lafarge
Fineness M
L
L
Customer Retention
Conclusion: Finer cement is easier for construction and hence customers prefer
brands with finer cement quality.
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Strategic Maps 3
Holcim
CM
Lafarge
Packaging M
L
L
Strategic Acquisitions
Conclusion: Good packaging of cement helps reduce wastage while transportation
and plays an important role.
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Brand Equity
In the case of cement, the brand recognition is important as it influences the decision of the buyer. The quality is
the same for any brand and obviously people buy the known brand.
Delivery
The speed and efficiency of delivery to the customer plays a crucial role as people prefer to have quick delivery.
Packaging
The packaging material is usually paper or polyethane bags. The bag quality is very important as they are stored
in the open and moisture is harmful to cement.
Customer Retention
Customers includes big real estate builders who order in bulk. Their demand for cement is constant as they keep
constructing buildings.
Fineness of cement
Finer cement is preferred by the masons as it is easier to mix with water and sand to make concrete.
Strategic Acquisitions
It does not directly influence the decision of the customers buying pattern but helps capturing new markets .
Price
Price of cement is fixed by the government and companies take advantage of efficient supply chain to reduce
costs.
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10
Competitive Matrix
Conclusion: The customers prefer a brand based on brand equity and Delivery
capability and Price is a threshold as it is fixed by the government.
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11
Triangle Model
Key Success Factors
Vision/Mission
Brand Equity
Delivery
Strategic
Competencies
Packaging
Customer Retention
Fineness of Cement
Lean Management
Strategic Acquisitions
Price
Value Proposition
Premium service offerings
Patrimonio Hoy program
Timely delivery of cement
Maximizing overall performance
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12
Mission/Vision/Values of CEMEX
Mission Statement:
Our mission is to serve the global building needs of our customers and build value for our stakeholders
by becoming the world's most efficient and profitable building materials company.
Vision Statement:
We at the CEMEX Shared Service Center know about ourselves, that we are a knowledge based value
added services provider, delivering our product portfolio above industry level benchmark achieving
customer and employee engagement.
Values
Collaboration
We work with others in a collective pursuit of excellence. Collaboration is at the core of all our
relationships. We collaborate with customers, colleagues, suppliers, and other partners in order to
reach common goals.
Integrity
We act with honesty, responsibility, and respect towards all the people and organizations with which we
interact.
Leadership
We aim to be leaders not only in the building materials industry, but also in all of our relationships. We
are a company with a sound vision for the future based on sustainability, excellence, and innovation.
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13
Ladder Model
Resources:
- Product
- People
- Capital
- Knowledg
e
- Technolog
y
- Suppliers
Competencies:
- Strong supply
chain
- Well
distributed
network
- Volume Sales
- Well located
shops
- Technology
- Cost Culture
- Product Mix
- Timely
delivery
- Consistent
production
Incompetency
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Strategic
Competencies:
- Strong supply
chain
- Well distributed
network
- Volume Sales
- Technology
- Cost Culture
- Product Mix
- Consistent
production
Peripheral
Competencies:
- Well located
shops
- Timely delivery
Distinctive
Competencies
- Strong
supply chain
- Well
distributed
network
- Technology
- Cost culture
- Product Mix
Threshold
Competencies:
- Volume Sales
- Consistent
production
Sustainable
Competitive
advantage:
- Strong Supply
chain
- Cost culture
- Product Mix
Competitive
advantage:
- Technology
- Well distributed
network
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Stepping
Out
Growing
Up
Stepping
Up
Groundwork for
Internationalization
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Vision/Mission
Strategic
Competencies
Packaging
Brand Equity
Delivery
Customer Retention
Price
Value Proposition
Premium service offerings
Lessen the houseless people
Timely delivery of Cement
Maximizing overall performance
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16
New Matrix
Weightage
Cemex
Holcim
Ltd
25%
Alternative fuels
15%
Packaging
15%
Brand Equity
15%
Delivery
10%
Customer Retention
10%
Price
10%
Total scores
100%
7.35
7.65
7.05
Market Share
100%
17%
30%
24%
Lafarge
S.A
Conclusion: Limestone which is the raw material and Coal which is fuel used for firing
is a non renewable resource and hence there will be a need to find a vastly available
substitute to meet the future demand once the deposits are exploited.
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Weakness
W1 Lack of identifying proper partners
W2 Resource constraint in International
Division.
W3 Poor International brand name.
Opportunities
O1 Globalization
O2 First time
Constructors
O3 Better Marketing in
Emerging Markets
Strategic Options
S1 O2 Better Branding
S2 O3 Increased customer
Strategic Option
W1 O3 Choose international
partners carefully.
Threats
T1 Rivalry with small
cement producers
T2 Competition from
new entrants
T3 Changing Customer
Demands
Strategic Option
S4 T3 Product Innovations
S3 T2 Acquisitions
SWOT Analysis
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base.
Strategic Options
W2 T1 Alternative raw material
W3 T2 Better Service
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Options Filter
Alignment
Organizatio
with
VP
nal
Total
Mission/Visio
30% Capability
Score
n/Values
30%
10%
Strategic
Options
LTO
30%
Better Branding
Increased
Customer base
Product
Innovations
Strategic
acquisitions
Alternate Raw
Materials
7.7
7.8
7.7
7.7
6.1
Better Service
7.4
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BIG- B Framework
This Model is based in 3 objectives and focuses on 7 action oriented priorities:
Enhance Value Creation
Lead in Sustainable Construction
Low Income Housing & Infrastructure
Manage Footprint
Engage Stakeholders
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Sources
www.cemex.com
http://www.dominicantoday.com/dr/economy/2010/7/7/36244/print
http://www.managementexchange.com/story/shift-changes-way-cemex-work
s
http://www.crisil.com/Ratings/SectorMethodology/MethodologyDocs/CRISIL-R
atings-crieria-cement-industry_2007.pdf
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u
o
Y
k
n
a
h
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