consumer conduct

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Globalization " The Cemex Way” Circumstance Analysis

The cement industry and its players made initially steps in the direction to Global the use only in the early 1970s. It could be known as somewhat paradoxical, because whenever we

apply the matrix of Global Integration and Local Responsiveness pressures towards the cement sector, we can clearly identify that the industry results high on most of the factors which will have pressed it to globalization very much earlier

Factors

These kinds of factors incorporate large expense intensity, technology intensity in production, challenges for cost reduction, universal needs, occurrence of international competitors, and access to local resources. Nevertheless that matrix does not consider the inherent attribute of the industry's principal item, namely low-value-to-weight ratio of cement.

Therefore , the approach from the fragmented localized market segments to creation of the MNCs spanning the world was caused not by the intrinsic widespread need for bare cement itself or perhaps by the options for labor cost arbitrage, as was common for many other sectors. Since bare cement itself was, and generally remains, rather than an export-driven business, because it was expensive to move, there had to be other individuals for the positive effect of the industry.

Indeed, the emergence of MNCs inside the cement market was brought on by significant progress in the progress the encouraging functions fundamental the industry as a whole, such as telecommunications, technology, capital markets, knowledge management. Unlike the cement, these kinds of functions had been much more well suited for " export” and their " value-to-weight” was very high.

Community Need

Evaluation of the factors of Regional Responsiveness displays us that the cement industry generally would not have substantial pressures for localizing their particular product. These pressures will be medium at most. Even though there can be some obvious differences in client demands from developed and emerging marketplaces, e. g. bulk versus bagged concrete, these...

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