Cemex Case Analysis

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CEMEX leverages its competitive advantages to cut operating costs and deliver a final product to the consumer at a lower cost. The company is vertically integrated in the cement industry. This allows them to optimize mining, packaging, and distribution channels (CEMEX, 2018). By doing so, CEMEX can reach a large number of consumers in a timely manner. CEMEX has leveraged technology to decrease costs in operating cement plants allowing the company to invest more in optimizing distribution networks to reach the maximum amount of people in the United States. Utilizing these competitive advantages has allowed CEMEX to maintain a large customer base by offering the highest quality product at a low cost and will propel the company to increased sales …show more content…
The growth of investment in the US, directs our focus on the success of a large infrastructure package recently signed by the new US administration, which includes funding for bridges, roads and sewage …show more content…
In this case, CEMEX determined the pricing strategy that will help the organization achieve the objectives. CEMEX has set a price target of $98 per cubic yard, according to its new market goal. The goal is to increase our sales domestically in the United States. CEMEX gives the consumer the perception of the value of the benefits received by purchasing its products. This results in a value pricing strategy. As long as CEMEX’s price exceeds the cost of production it is meeting its pricing objectives. Our recommendations to CEMEX is to continue to bring value to its products by adding other features that give a perception of innovative and sustainable solutions and high-quality

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