company can observe how close the alignment between value-adding resources & capabilities and its core functions is. Strategy can then consider strengthening R&Cs deployment to gain competitive advantage.
Core Functions In the current global and competitive environment CEMEX's core functions are Procurement and Technology Development: disruptions or delays in such functions will significantly damage the firm's operations, profitability, and competitive position. Cement production makes use of large quantities of non-renewable resources such as fossil fuels, sands, and minerals (IEA, 2020). Scarcity of these resources threatens industry players on various fronts: high demand-low availability results in increasing prices, raising total costs of production. Some domestic markets lack sufficient resources required for production, leading to additional transport/import costs. Local restrictions might cause delays with production and launch of new products, damaging profitability. - Interference by environmental organisations can compromise brand reputation, customer loyalty and profitability. Many of CEMEX's R&Cs can be exploited to strengthen the procurement function (Figure 8): its extraction sites and distributions channels worldwide (R3, R16), its reputation as leader in sustainability (R12, R13 and C3) and its use of clean energy and green technologies (R16, R17). Technology development is not only required for procurement but is also essential to achieve CEMEX's 2030 and 2050 roadmap to carbon neutrality, harmonizing its operations to global efforts. Alignment between CEMEX's R&Cs and this function is strong: through its R&D centre and partnerships the company is scaling up use of alternative fuels, low- carbon products, and technologies (e.g., Vertua, Hydrogen Injection Technology). The company currently owns 45 patents and $252M in trademarks and Intellectual Property (R5, R6, R7, R9, R10). Digital solutions such as CEMEX Go and Construrama online store (R4) have supported sales and customer satisfaction in 2020. The company can further expand its digital resources to improve efficiency, quality, and access new customers segments in the construction value chain.
VALUE CHAIN Analysis Porter's (1980) Value Chain is an analytical tool to observe which of a firm's activities add the most value to its products and services. Through mapping its R&Cs in the Value Chain, a VALUE CHAIN Analysis Porter's (1980) Value Chain is an analytical tool to observe which of a firm's activities add the m
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