Question

Cemex is a cement industry.

With the help of satellites and software modeled on the 911 emergency systems of major U.S. cities, Cemex concrete trucks can fulfill an order within 30 minutes of its being placed. Mr. Zambrano, a self-avowed technology freak, often monitors cement-oven temperatures at far-away plants from his desk in Monterrey, Cemex's corporate home.With the help of satellites and software modeled on the 911 emergency systems of major U.S. cities, Cemex concrete trucks can fulfill an order within 30 minutes of its being placed. Mr. Zambrano, a self-avowed technology freak, often monitors cement-oven temperatures at far-away plants from his desk in Monterrey, Cemex's corporate home.

Can anyone help me economically explain and elaborate on how Cemex has used this satellite and software to create product differentiation which contributes towards increasing its monopolistic/market power?

Answer 1

First of all Cemex has a very good transport system which is at par with the 911 emergency systems, this feature makes it unique from it's competitors and will increase the sales of the company which in turn will lead to higher profits. We are aware how the big monopolists derive it's competitors out of the market. With new technology it also reduces the chances of any defaults or bad products as Mr Zambrano continuously monitors the plant which makes the product and builds a reputation of the company in the market.Other players in the market may find it very hard to compete with the cemex as it will always have the first mover advantage.