The Resource-Based View of the firm emphasises the allocation of resources to gain a

competitive advantage (Barney, 1991). Evaluate the extent to which this applies to the
success of CEMEX utilising the case study.

108

It is not uncommon that firms have to maintain their core competencies in order to survive and
sustain in the hypercompetitive market. For the purpose of striving in the market, a firm should
consider its internal resources to determine at least two competitive advantages and at most five
competitive advantages, thus introducing the Resource-Based View theory (Prahalad and Hamel,
1990). Similarly, Barney (1991) identifies firms as bundles of productive resources; hence, by
deploying those resources efficiently and effectively, firms could make the most of market
opportunities. In the next section of this paper, the Resource-Based View will be used to discuss
the success of the CEMEX case study.

Looking at the case study of CEMEX in more detail, during the period between 1990s and
2000s, CEMEX, a cement manufacturing firm originated from Northern Mexico, became a
global giant with direct operations among more than 50 countries as well as a global leader in
ready mix. CEMEX Mexico put strategic emphasis on improving customer service by offering
solutions rather than just products, whenever possible. Strategic themes in each country
emphasise "value before volume," sales force effectiveness, and distribution network
enhancement. CEMEX took up around a half of Mexico’s market share in cement consumption.
CEMEX’s achieving success can be analysed by using the Resource Based View theory. 107

CEMEX possessed certain internal resources. Barney (1991) defines "resources'' as "all assets,
capabilities, organisation processes, firm attributes, information, knowledge, and so forth
controlled by a firm." According to McGee et al. (2005), resources are classified into two
subgroups: tangible and intangible. On the one hand, CEMEX has tangible resources including
infrastructure such as cement plants, quarries, truck and railcar fleets, rail facilities, ready-mix
concrete plants, ready-mix concrete delivery trucks, distribution centres, and a nationwide
logistics network. On the other hand, CEMEX’s intangible resources consist of the company's
culture, "One CEMEX," its reputation as an attractive employer, and its network of independent
retailers, Construrama. The noteworthy point is the unique resource of CEMEX, which is
CEMEXNET - . 115

However, not all resources provide a competitive advantage, prompting the development of
Barney's VRIO test (1991, 1995) to determine whether a resource provides a sustainable
competitive advantage. CEMEX’s resources would be put into the VRIO test in the following
table.
CEMEXNET would provide a sustainable competitive advantage for CEMEX. Firstly, due to the
Mexican phone system’s unreliability and inefficiency, the network among the company's
operations could be negatively affected. CEMEX’s investment in CEMEXNET would give great
value since it could optimise production and generate flexibility to cope with fluctuation as well
as unexpected issues. The transformational investment of CEMEX into the company’s ways of
managing its logistics and supply chain resulted in its moving way ahead of its worldwide and
local competitors, thus proving its rareness. The price of the satellite communication would be
classified as expensive; hence, only firms with strong financial capabilities can afford the cost. It
is evident that in the cement market, almost no firms could outperform CEMEX; as a result,
CEMEXNET could be considered as inimitable. Its chief executive officer championed the
enterprise-wide adoption of information technology and operational data so as to organised
CEMEXNET effectively.

Inviting the company's bigger shops to join this national chain, the network had 782
separate enterprises operating 1110 outlets throughout Mexico by 2014. The expansion is such a
valuable asset of CEMEX. Furthermore, more than 90% of Mexicans were familiar with the
Construrama, far more than other building supplies businesses. CEMEX's profit increased as a
result of Construrama's advances in sales, and an excellent logistics system produced a
tremendous advantage. In addition, participation in Contrusganas, CEMEX's loyalty program,
broadens the buying scope of consumers. CEMEX has used such measures to grow its market
presence and achieve its objectives. CEMEX is the only company that now has the nationwide
distribution of qualified goods, a distribution network, and top executives. In other words, these
circumstances are regarded as uncommon. Romero claimed that the country, like no one else,
had the best products and solutions, a superior distribution network and the best people in the
industry. Consequently, it is evident that Construrama satisfies the ‘rare’ aspect. CEMEX has
implemented several initiatives and projects to increase its social complexity. By launching
Patrimonio Hoy, for instance, CEMEX has strengthened its ties with all Construrama's clients,
even those with modest incomes, in order to aid them with construction. This facilitates the
company's growth in customer segmentation through Construganas, which is such an
inimitability. Additionally, CEMEX's manufacturing facilities chain accumulates a large
inventory of resources: 49 quarries, 85 distribution facilities with seven marine ports, 286
concrete ready-mix plants in 80 locations, and a fleet of 2,320 vehicles. These aspects increase
the company's efficient logistics, and if rivals want to replicate, they must make massive
expenditures with little assurance of success against CEMEX. The support and training in several
business processes, such as employee training, marketing, inventory management, and consumer
do-it-yourself manuals with the good policies and offers provide proof that the Construrama
project is well-organised. Besides, Construrama 2.0 is also a result of good organisation. In
addition to implementing customer loyalty programs and membership financing plans for low-
income clients, Romero and management place a significant emphasis on the in-store procedure.
For the purpose of minimising errors, professional working style and quality standards are
regularly enhanced via employer-supported training sessions.

In conclusion, CEMEX with 2 sustainable competitive advantages complies with Resource-

Based View theory (Prahalad and Hamel, 1990), thus clarifying its success. Despite the merits
brought by Resource-Based View theory, it also has its limitations. The limitations could be
listed as difficulty in organisational implementation, and barely no consistency terminology’s
usage. Additionally, in the VUCA world (Whiteman, 1998; Bennett and Lemoine, 2014),
competency can hardly be inimitable. From another perspective, resources have temporary
advantage in an ever-changing environment; therefore, firms need to move forward to create or
seek new sources of possible merits, thus prompting the development and integration of
Dynamic Capabilities (Teece and Pisano, 1994; Wang and Ahmed, 2007) to enhance the
Resource Based View theory.

In conclusion, CEMEX's two sustainable competitive advantages comply with the

Resource-Based View theory (Prahalad and Hamel, 1990), thus clarifying its success.
Despite the benefits of the resource-based view theory, it has limitations. The limitations
include difficulty in organisational implementation and a lack of consistency in terminology
usage. Additionally, in the VUCA world (Whiteman, 1998; Bennett and Lemoine, 2014),
competency can hardly be inimitable. From another perspective, resources have a
temporary advantage in an ever-changing environment; therefore, firms need to move
forward to create or seek new sources of possible merit, thus prompting the development
and integration of dynamic capabilities (Teece and Pisano, 1994; Wang and Ahmed, 2007)
to enhance the resource-based view theory.
‌ egarding JetBlue, the corporation is an airline that has a low-cost approach. In other words,
R
JetBlue offers inexpensive airline tickets, but consumers may also be happy with its exceptional
service and the professionalism of its workers despite several constraints, such as the lack of
meal service but the availability of light snacks and the absence of an in-flight entertainment
system. Customers are transported to their locations using Airbus aircraft, and the firm is now
estimating the addition of E190 aircraft, which are more fuel efficient and have lower operating
costs. In addition, the corporation places a high emphasis on delivering service to clients, as the
JetBlue team is constantly searching for unique service activities to attract customers. For
instance, the firm offers limitless snacks in lieu of lunch service, which is greatly appreciated by
clients. In addition, the company is exerting significant effort to provide client seats with satellite
television so that they may rest throughout the journey. And from these intrinsic characteristics
of JetBlue, the aforementioned projects may be split into several elements of Porter and Kramer's
social concerns (2006). Social concerns, according to the authors, may be categorised into three
groups: generic social issues, value chain effect, and social elements in competitive scenarios.

In conclusion, project ' ' is the one that the company should cease focusing on; but, in order to
enhance its image, the corporation must also engage in significant activities in this area or be a
responsible CSR. The firm should also maintain efforts ' ,' ' ,' and ' ' to decrease the
environmental impact of its operations, while action ' ' can provide further benefits to the
company by offering more direct points to JetBlue and reducing energy costs. Particularly, the
corporation must continue to invest in project 'B' in order to continue creating shared value. In
the long run, the company will consistently experience excellent outcomes.

Since 1999, JetBlue Airways has been a domestic airline in the United States, and its first flight
took place in 2000. JetBlue's management has reportedly decided to introduce the "Mint class" in
order to increase earnings by targeting the premium air travel market. It was bad judgement since
it was a break from the company's values and a threat to its reputation; this is demonstrated by
analysing the impact of "Mint class" on the firm's value proposition using Porter's framework.