Organization Policy and Stategy Case Study Example | Topics and Well Written Essays - 750 words

Organization Policy and Stategy - Case Study ExampleRetail sales, which were important in developing countries such as those in Asia, were less cyclical (Ghemawat 3). Asia was the growing market and its buyer place was weak because it had few cement manufacturers, high up population densities and less cyclical demand.The diligence was characterized by high barriers to entry in the form of high capital and energy-intensity requirements, cyclic demand and the maturity of the industry i.e. no major innovations had been recorded in the last 20 years (Ghemawat 2). About the competition within the industry we are informed that though there were six major world-wide players, given their geographic diversification, they tended to be outperformed in any given year by competitors focused solely on local markets that happened to be booming (Ghemawat 3). Industry rivalry was not that intense.As for threat of substitutes, this only applies for the developed markets (Western Europe and nitrog en America) where due to the weather they prefer using wood or steel. But this would not be a big factor considering that the projected growth in these regions is at the lowest, close to 1% which is why the international players were eyeing the emerging markets.By the year 2000, CEMEX had become the third largest cement company in the world be led by the scion of the founder, Lorenzo Zambrano (Ghemawat 5). Initially, to reduce risk related to the cyclic core business, the immobile began diversifying horizontally except after much thought they returned to their core competency area to seek growth through strategic acquisitions. This strategy saw the company grow to have the largest market share in Mexico before it began to dispersed globally. With this growth strategy, CEMEX moved from the United States to Spain to Latin America then to Asia and other regions. By December 1999 the firm had a presence in 15 countries. Still seeking greater international presence CEMEX apply US$1. 175 billion