So CEMEX made itself a world-class company by buying out industry players that were undervalued? Sounds familiar... http://www.youtube.com/watch?v=-4QPVo0UIzc
Was Lorenzo Zambrano offered an executive position at a more attractive company? Was their business model based on purchasing undervalued companies that had the pontential to deliver? Were statisics used to purchase the companies? Its a stretch but I can see it!
Sure if your just filling post holes, but for pouring a driveway, no way. Sir mix-a-lot or not, anything more than a couple yards is a huge undertaking.
Completing the I-15 reconstruction project with bagged cement would have been fun to watch. Sir Mix-a-lot would need many mix-a-lot apprentices to complete that one.
Gents - thanks for noticing my snarkiness. My rule is twenty bags...if a job requires more than twenty bags or 7 cubic feet of mix, then I'm better off not using bags. But I prefer the bags for small jobs so I can control the air retained, slump, additives, and delivery time.
Does anyone here actually know who Sir Mix A Lot was?
Oh... you asked for it Max and Kristena is here to deliver. Lol... Hit control and click on this link http://www.youtube.com/watch?v=kY84MRnxVzo&feature=player_embedded After you watch this you will have a new appreciation for mixing cement.
Thank goodness for bagged cement for the do-it-yourself people! I have a small project that I want to do soon. I want to make a cement pad for the grill in my yard. I can't imagine calling a cement company to come bring their big truck just for a small square. Haha!
I think CEMEX did a good job of exploiting its existing competencies internationally. RAT and CAGE both come into play. CEMEX moving into Spain is one example of this.
According to the CEMEX article, demand is sensitive to business cycles and economic growth rates and economic development. CEMEX's strategy has helped them capitalize on these factors. Zambrano and his team have been very bullish on the company's continue growth prospects. Zambrano was quoted as saying, "I believe that CEMEX is at a critical point in our company's evolution. We have produced a record that is unparalleled in our industry." we have traced a path that no one can match: from being a Mexican company, to being a Latin American company, to being a global company. We have overcome the financial stigma of being from the emerging markets and have achieved a marginal cost of borrowing comparable to our European peers. We have prospered through the ebb and flow of the global economic cycle, demonstrating the resilience of our business model. And, we have consistently delivered [exceptional] returns to our shareholders."
The company has help a robust market position which has been one of its competitive advantages. As a result, the company has been able to see an increase in its market share because of this. Additionally, the company is involved in a global trading network with trading relationships with 101 countries. This network enables CEMEX to deliver cement to places where demand is high. The company has been very successful and I believe will continue to be a strong presence in the marketplace.
For consumers, bagged cement. Because we consumers like to consume things on our own time, not on someone else's.
For CEMEX, profit margin potential is far less, but there's more of a market in mature economies for bagged. I say create a superior bagged product (i.e. - R&D a lighter, superior product) and rake profit margins in the bagged segment.
Yeah I just don’t see the margins being that good for bagged cement vs. bulk quantities. Especially in emerging markets that are becoming increasingly industrialized where there is high demand for large commercial projects.
JT, much agreed, and point well taken. I was being a little snarky in my reference to CEMEX jumping more fully into the bagged cement segment. Essentially, I was suggesting that if CEMEX could somehow possibly create the "iPhone" of bagged cement, that they could rake profits by selling it as a differentiated, superior product in mature markets that would be willing to pay for the superiority.
I think bagged cement has even greater potential for growth in underdeveloped countries. You ever seen someone build a home in an under developed country? Take Sir-mix-a-lot with his 7 bags of cement and some bricks and you've got yourself a home. The question is do they make more margin (percentage wise) on an industrial project or on individual bag purchases? Sorry - this isn't a snarky comment. I'll try harder next time.
CEMEX has done well overall in expanding internationally. As it expanded it increased its competencies/skills in international expansion and has extracted profits from it. Bagged cement is another way to increase its international footprint into the residential consumer market that outside the US is very large. Bags make it easier to manage and allows the consumer to use the product as time permits.
Bagged cement definitely has its applications. Small projects where it doesn't make sense to call out a ready mix truck are perfect for bagged cement. Most concrete projects of substantial size require specific concrete specs that would be difficult to attain mixing it yourself in a wheelbarrow. Testing companies are required on large projects to take concrete samples every 40 to 50 yards to test for water and air content as well as test compressive strength.
I wonder if these same standards and policies exist across borders for commercial or residnetial pours? Small bags are great in that it is a do-it-yourself application.
All cement is not equal and it really depends on who is doing the work and pouring it because as Ben has mentioned if not tested for the right amount of water and air you can really be in trouble.
It's all in the bag. I was surprised at the amount of cement that was transported by ship. Can you imagine the mess when they hit rough weather and take a wave over the bow.
I worked on supply boats in the Gulf back in 1999 and 2000. We carried cement to the oil rigs in 180-foot flat bottomed boats. To move the cement up to the rig (200 feet above the surface), we used compressed air. We blew compressed air into the bottom of the hold, then opened the valve on the hose. And away it went.
Cemex did a great job in expansion, especially with such a product. In a market like this which is full of competitors and most companies compete on a price wars, it would be difficult to enter a market with a new product and convince people to purchase yours just because you want them to. So Cemex was clever in acquiring stablished companies in those markets which still had plenty of potential for expansion within that market. The had a much higher chance of success than trying to bring their own brand into different markets.
CEMEX did a great job acquiring many businesses throughout the years making them the 3rd largest cement-maker in the world. This strategy of acquiring businesses and implementing best practices with the “CEMEX Way” got them to where they are today, however I would agree with analysts that their future is rather bleak. The leaders within the cement industry are continuing to grow through acquisitions, which seem to be overvalued. These smaller up and coming cement companies are just waiting for one of the leaders to come buy them out. I feel CEMEX needs to come up with a new breakthrough idea that would propel them to the top rather than playing the acquisition game where they pay far more than the organization is worth.
I feel the biggest advantage CEMEX had was their use of electronic systems. To many companies were stuck in the stone age still dealing with paper trails for work.
CEMEX has been very successful in turning foreign inefficient cement manufactures and turning them around by implementing its proven strategies. CEMEX has seen some failures on the road to its success, primarily in Indonesia and potentially in other future locations where government interaction will be negative. Ultimately, CEMEX has chosen the best possible avenue for its international operations.
I agree that CEMEX has executed its strategy very well in acquiring "under-performing" companies around the world and assimilating them into the CEMEX culture. However, with the current economic environment, external factors, it is going to be difficult for CEMEX to keep its profits from the slide they are currently in.
It appeared that CEMEX was successful in growing the business partly due to the economic downturn of those countries within which CEMEX was trying to gain market share. So at this time of global economic stagnation, why is it that CEMEX seems to be floundering? Is the CEMEX growth model reliant on some countries to be in a recession and others to have economic growth and therefore, a stable foundation is necessary to be able to expand into unstable markets? Consequently, CEMEX’s current downward slide is contributed to a global downturn and a lack of a secure footing from which to expand into troubled markets.
I spoke to my boyfriend who has grown up and been around the construction industry about bagged cement. He told me that in certain applications it is useful but for the most part our local construction industry relies on premixed cement which is delivered by cement trucks to get the job done.
So CEMEX made itself a world-class company by buying out industry players that were undervalued? Sounds familiar...
ReplyDeletehttp://www.youtube.com/watch?v=-4QPVo0UIzc
CEMEX = Oakland A's
ReplyDeleteLorenzo Zambrano = Billy Beane
I like it.
Was Lorenzo Zambrano offered an executive position at a more attractive company? Was their business model based on purchasing undervalued companies that had the pontential to deliver? Were statisics used to purchase the companies? Its a stretch but I can see it!
DeleteBagged cement is better because I'm Sir Mix-a-lot.
ReplyDeleteSure if your just filling post holes, but for pouring a driveway, no way. Sir mix-a-lot or not, anything more than a couple yards is a huge undertaking.
DeleteCompleting the I-15 reconstruction project with bagged cement would have been fun to watch. Sir Mix-a-lot would need many mix-a-lot apprentices to complete that one.
DeleteGents - thanks for noticing my snarkiness. My rule is twenty bags...if a job requires more than twenty bags or 7 cubic feet of mix, then I'm better off not using bags. But I prefer the bags for small jobs so I can control the air retained, slump, additives, and delivery time.
DeleteDoes anyone here actually know who Sir Mix A Lot was?
Oh... you asked for it Max and Kristena is here to deliver. Lol... Hit control and click on this link http://www.youtube.com/watch?v=kY84MRnxVzo&feature=player_embedded After you watch this you will have a new appreciation for mixing cement.
DeleteThank goodness for bagged cement for the do-it-yourself people! I have a small project that I want to do soon. I want to make a cement pad for the grill in my yard. I can't imagine calling a cement company to come bring their big truck just for a small square. Haha!
DeleteKristena - that's exactly what I'm talking about. But we sing it lounge style....
DeleteBagged cement= small
DeleteTruck=Big and Large
Sir mix alot
I think CEMEX did a good job of exploiting its existing competencies internationally. RAT and CAGE both come into play. CEMEX moving into Spain is one example of this.
ReplyDeleteAccording to the CEMEX article, demand is sensitive to business cycles and economic growth rates and economic development. CEMEX's strategy has helped them capitalize on these factors. Zambrano and his team have been very bullish on the company's continue growth prospects. Zambrano was quoted as saying, "I believe that CEMEX is at a critical point in our company's evolution. We have produced a record that is unparalleled in our industry." we have traced a path that no one can match: from being a Mexican company, to being a Latin American company, to being a global company. We have overcome the financial stigma of being from the emerging markets and have achieved a marginal cost of borrowing comparable to our European peers. We have prospered through the ebb and flow of the global economic cycle, demonstrating the resilience of our business model. And, we have consistently delivered [exceptional] returns to our shareholders."
The company has help a robust market position which has been one of its competitive advantages. As a result, the company has been able to see an increase in its market share because of this. Additionally, the company is involved in a global trading network with trading relationships with 101 countries. This network enables CEMEX to deliver cement to places where demand is high. The company has been very successful and I believe will continue to be a strong presence in the marketplace.
For consumers, bagged cement. Because we consumers like to consume things on our own time, not on someone else's.
ReplyDeleteFor CEMEX, profit margin potential is far less, but there's more of a market in mature economies for bagged. I say create a superior bagged product (i.e. - R&D a lighter, superior product) and rake profit margins in the bagged segment.
Yeah I just don’t see the margins being that good for bagged cement vs. bulk quantities. Especially in emerging markets that are becoming increasingly industrialized where there is high demand for large commercial projects.
DeleteJT, much agreed, and point well taken. I was being a little snarky in my reference to CEMEX jumping more fully into the bagged cement segment. Essentially, I was suggesting that if CEMEX could somehow possibly create the "iPhone" of bagged cement, that they could rake profits by selling it as a differentiated, superior product in mature markets that would be willing to pay for the superiority.
DeleteI think bagged cement has even greater potential for growth in underdeveloped countries. You ever seen someone build a home in an under developed country? Take Sir-mix-a-lot with his 7 bags of cement and some bricks and you've got yourself a home. The question is do they make more margin (percentage wise) on an industrial project or on individual bag purchases? Sorry - this isn't a snarky comment. I'll try harder next time.
DeleteCEMEX has done well overall in expanding internationally. As it expanded it increased its competencies/skills in international expansion and has extracted profits from it. Bagged cement is another way to increase its international footprint into the residential consumer market that outside the US is very large. Bags make it easier to manage and allows the consumer to use the product as time permits.
ReplyDeleteBagged cement definitely has its applications. Small projects where it doesn't make sense to call out a ready mix truck are perfect for bagged cement. Most concrete projects of substantial size require specific concrete specs that would be difficult to attain mixing it yourself in a wheelbarrow. Testing companies are required on large projects to take concrete samples every 40 to 50 yards to test for water and air content as well as test compressive strength.
DeleteI wonder if these same standards and policies exist across borders for commercial or residnetial pours? Small bags are great in that it is a do-it-yourself application.
DeleteAll cement is not equal and it really depends on who is doing the work and pouring it because as Ben has mentioned if not tested for the right amount of water and air you can really be in trouble.
DeleteIt's all in the bag. I was surprised at the amount of cement that was transported by ship. Can you imagine the mess when they hit rough weather and take a wave over the bow.
ReplyDeleteI worked on supply boats in the Gulf back in 1999 and 2000. We carried cement to the oil rigs in 180-foot flat bottomed boats. To move the cement up to the rig (200 feet above the surface), we used compressed air. We blew compressed air into the bottom of the hold, then opened the valve on the hose. And away it went.
DeleteInteresting Max! Maybe CEMEX should expand their product offerings and sell the cement in 25 lb. bags.
DeleteCemex did a great job in expansion, especially with such a product. In a market like this which is full of competitors and most companies compete on a price wars, it would be difficult to enter a market with a new product and convince people to purchase yours just because you want them to. So Cemex was clever in acquiring stablished companies in those markets which still had plenty of potential for expansion within that market. The had a much higher chance of success than trying to bring their own brand into different markets.
ReplyDeleteCEMEX did a great job acquiring many businesses throughout the years making them the 3rd largest cement-maker in the world. This strategy of acquiring businesses and implementing best practices with the “CEMEX Way” got them to where they are today, however I would agree with analysts that their future is rather bleak. The leaders within the cement industry are continuing to grow through acquisitions, which seem to be overvalued. These smaller up and coming cement companies are just waiting for one of the leaders to come buy them out. I feel CEMEX needs to come up with a new breakthrough idea that would propel them to the top rather than playing the acquisition game where they pay far more than the organization is worth.
DeleteI feel the biggest advantage CEMEX had was their use of electronic systems. To many companies were stuck in the stone age still dealing with paper trails for work.
DeleteCEMEX has been very successful in turning foreign inefficient cement manufactures and turning them around by implementing its proven strategies. CEMEX has seen some failures on the road to its success, primarily in Indonesia and potentially in other future locations where government interaction will be negative. Ultimately, CEMEX has chosen the best possible avenue for its international operations.
ReplyDeleteI agree that CEMEX has executed its strategy very well in acquiring "under-performing" companies around the world and assimilating them into the CEMEX culture. However, with the current economic environment, external factors, it is going to be difficult for CEMEX to keep its profits from the slide they are currently in.
DeleteIt appeared that CEMEX was successful in growing the business partly due to the economic downturn of those countries within which CEMEX was trying to gain market share. So at this time of global economic stagnation, why is it that CEMEX seems to be floundering? Is the CEMEX growth model reliant on some countries to be in a recession and others to have economic growth and therefore, a stable foundation is necessary to be able to expand into unstable markets? Consequently, CEMEX’s current downward slide is contributed to a global downturn and a lack of a secure footing from which to expand into troubled markets.
DeleteI spoke to my boyfriend who has grown up and been around the construction industry about bagged cement. He told me that in certain applications it is useful but for the most part our local construction industry relies on premixed cement which is delivered by cement trucks to get the job done.
ReplyDeleteThis comment has been removed by the author.
ReplyDelete