Recommendations of Cemex Transforming A Basic Industry Company Case Solution

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Recommendations of Cemex Transforming A Basic Industry Company Case Study Help

On the basis of above internal and external analysis of the business along with the examination of numerous alternatives, the company is advised to consider alternative 3. As alternative 3 would allow the business to broaden in worldwide markets without any reduction in its local profits and any deterioration of its market position. The business could pursue alternative 1 which would make it possible for the company to focus on prospective international markets rather than the local markets but as the business is extremely reliant on the local markets with 90% of its stores in the US, there fore pursuing alternative 1 would result in the substantial decrease in business's profits.

Aletrnative-1: Expanding International Brick and Recommendations of Cemex Transforming A Basic Industry Company Case Help Stores

Expansion towards global markets through opening brand-new stores in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the international existence of the business. Nevertheless, the closing of domestic stores might extremely impact the profits of the company as above 90% of its stores are located locally and closing those shops would ultimately lower the revenues of the firm. The company has a long term market position in US which can not be produced quickly in the brand-new markets. The choice would assist the business to broaden in worldwide markets together with the elimination of problems raised in its regional markets related to its diversity. The benefits and drawbacks for Alternative 1 are noted below;

Pros:

• Expedition of new worldwide markets.
• Increase in profits from global markets.
• Elimination of problems associated with variety.
• Profits diversity.
• Step towards being a strong global brand name.

Cons:

• Loss of comprehensive profits from the local markets.
• Boost in competition.
• Distinctions in cultures might led to a failure of the brand name specifically in Asian countries.
• Low revenues at initial levels.
• Increase in marketing expenses to get market share.

Alternative-2: Introduction of Click and Recommendations of Cemex Transforming A Basic Industry Company Case Solution Stores

With the increased patterns towards online shopping, the online stores like Amazon, Alibaba and so on could posture an extreme hazard to the market share of company. In this scenario the company might think about presenting Click and Recommendations of Cemex Transforming A Basic Industry Company Case Help shops. These shops with a low requirement of funds to settle would allow the business to reach international markets, without ending its domestic shops.

Pros:

• Low investment
• Lowering competition hazard
• Access to the world markets
• Increasing the size of consumer base
• Easy to manage
• Large Profits
• Low Operating Costs
• Easy brand-new market entrance

Cons:

• Risk to the marketplace position
• Removal of brand name Uniqueness
• Elimination of the fantastic shop experience.
• Danger of decrease in elite sales.

Alternative-3: Expansion towards International Markets Without closing Domestic Stores

Another alternative that the business could consider, is to broaden towards the worldwide markets without closing its domestic shops that contributes to the huge part of earnings of the business. The advantages and disadvantages associated with Alternative 3 are offered below;

Pros:

• Decreasing competitors threat
• Access to the world markets
• Increasing the size of consumer base
• Large Earnings
• Exploration of new international markets.
• Boost in revenue from international markets.
• Income diversification.
• Action towards being a strong global brand.

Cons:

• Extension of problems connected to diversity.
• Distinctions in cultures could resulted in a failure of the brand especially in Asian nations.
• Low incomes at preliminary levels.
• Increase in marketing expenditures to get market share.



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