The Cemex Case Study

Jun 18th, 2015
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Alabama State University
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plant founded in Hidalgo, Mexico, in 1906. today, Cemex manufactures and distributes cement in 30 countries, maintains commercial relations in about 60 more, and, with revenues of over $4.8 billion (1999), is the world’s third-largest cement manufacturer. It shares first place with Petrobras of Brazil and YPF of Argentina on the list of the most respected companies in Central and South America, and is the only Central American Company to win a place in the world rankings. Cemex’s business performance has been extremely impressive. What makes the Cemex story extraordinary, however, is the highly unpromising nature of the industry in which Cemex operates. A definition of the characteristics of the toughest business on earth might include: an asset-intensive commodity business with low profit margins, low rates of growth, and unpredictable demand whipsawed by changes in economic conditions, interest rates, and government policies.

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If Cement Can, Anyone CanThe Cemex Case StudyJeff Bezos said he would sell anything but cement, the toughest business on earth. Heres how Cemex, the worlds third-largest cement manufacturer, became a digital trendsetter despite a horrendous Old Economy legacyCemex is perhaps the most unlikely of todays digital innovators. Its roots are in a single cement plant founded in Hidalgo, Mexico, in 1906. today, Cemex manufactures and distributes cement in 30 countries, maintains commercial relations in about 60 more, and, with revenues of over $4.8 billion (1999), is the worlds third-largest cement manufacturer. It shares first place with Petrobras of Brazil and YPF of Argentina on the list of the most respected companies in Central and South America, and is the only Central American Company to win a place in the world rankings.Cemexs business performance has been extremely impressive. What makes the Cemex story extraordinary, however, is the highly unpromising nature of the industry in which Cemex operates. A definition of the characteristics of the toughest business on earth might include: an asset-intensive commodity business with low profit margins, low rates of growth, and unpredictable demand whipsawed by changes in economic conditions, interest rates, and government policies. Throw in customers who are always changing their orders and are driven by uncontrollable factors such as weather, work stoppages and traffic jams, and the result is a pretty g

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