Essay Case Study Cemex

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Case 1 CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX's position in the global cement industry? First, the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus, the expansion of the scale of the company is very critical to enhance the competitiveness, especially the international expansion to different countries and continents. Decentralized production and sales in a wide range of countries can offset the risk of shocks in some markets. On the cost side, as a capital intensive and cash generative industry, cement…show more content…
Second, in 1990, an Executive information System was designed and launched to meet the requirement of a larger company's management. The integrated system helped to provide accurate and timely reports to different users. It greatly reduced the time of looking for information and allowed managers to have more time to do some creative innovations. Third, the Post-Acquisition integration team was set up to help the newly acquired companies. CEMEX merged great quantity of companies from different regions. However , many small companies' equipment and local employees' behaviors cannot meet the standards of CEMEX. It improved the efficiency of new acquired companies and accelerated the expansion to build up product leadership. Fourth, CEMEX enhanced its technological infrastructure and reorganized its IT team. It liberated the IT team from programming. In 1993, CEMEX set up a new company--Cemtec to act as an IT service provider. From then on, the IT team became a separated company. In 1995, CEMEX launched a local digital dispatch system to guarantee cement deliveries in time, which gave the company a better market positioning. The system increased truck productivity by 35%. In general, these changes either enhanced the operational excellence of CEMEX or improved the expansion of CEMEX. 3. What investments in IT did Cemex make in the period post-1997? What are the benefits from these investments? First, in September 2000, to arrange a network of

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