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 company together with the evaluation of various alternatives, the business is recommended to think about alternative 3. As alternative 3 would enable the company to expand in worldwide markets with no reduction in its regional earnings and any deterioration of its market position. By considering Alternative 3, the business could maintain its store experience and brand name uniqueness. However, it could also consider alternative 2 that could allow the business to access the markets without any potential investment. Although, the business might pursue alternative 1 which would allow the company to concentrate on potential worldwide markets rather than the regional markets however as the company is highly depending on the regional markets with 90% of its stores in the US, there fore pursuing option 1 would lead to the significant decline in business's revenue. The business is suggested to think about alternative 3.

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

Growth towards international markets through opening brand-new shops in other Europe and Asian countries with closing domestic shops is although an excellent alternative for increasing the international existence of the business. However, the closing of domestic shops could highly affect the profits of the company as above 90% of its stores lie domestically and closing those shops would eventually reduce the incomes of the firm. Furthermore, the company has a long term market position in US which can not be generated quickly in the new markets. The option would help the business to broaden in global markets together with the removal of problems raised in its local markets connected to its diversity. The benefits and drawbacks for Alternative 1 are listed below;

Pros:

• Expedition of new worldwide markets.
• Boost in earnings from worldwide markets.
• Removal of issues connected to variety.
• Profits diversity.
• Action towards being a strong international brand.

Cons:

• Loss of extensive revenues from the local markets.
• Boost in competitors.
• Distinctions in cultures could resulted in a failure of the brand name specifically in Asian nations.
• Low earnings at preliminary levels.
• Boost in marketing expenditures to acquire market share.

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

Alternative 2 consists of the intro of online market locations through producing an appropriate business's website. With the increased trends towards online shopping, the online shops like Amazon, Alibaba etc. could position a severe threat to the market share of business. The competitors are shifting towards click and Recommendations of Cemex: Transforming A Basic Industry Company Case Help shops with Space introducing Piperline. This shift towards online markets could minimize the incomes for company. In this situation the company could consider introducing Click and Recommendations of Cemex: Transforming A Basic Industry Company Case Analysis shops. These stores with a low requirement of funds to settle would allow the business to reach worldwide markets, without ending its domestic shops. The benefits and drawbacks of alternative 2 are provided as follows;

Pros:

• Low financial investment
• Lowering competitors threat
• Access to the world markets
• Enlarging customer base
• Easy to manage
• Big Earnings
• Low Operating Expense
• Easy new market entryway

Cons:

• Threat to the market position
• Removal of brand name Individuality
• Removal of the great store experience.
• Threat of decline in elite sales.

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

Another alternative that the business could consider, is to expand towards the worldwide markets without closing its domestic stores that adds to the major part of incomes of the business. The benefits and drawbacks related to Alternative 3 are offered below;

Pros:

• Minimizing competitors danger
• Access to the world markets
• Increasing the size of consumer base
• Big Incomes
• Expedition of brand-new worldwide markets.
• Increase in earnings from international markets.
• Revenue diversification.
• Step towards being a strong global brand.

Cons:

• Extension of problems associated with variety.
• Distinctions in cultures could resulted in a failure of the brand particularly in Asian countries.
• Low earnings at preliminary levels.
• Increase in marketing expenses to get market share.



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