Total Words: 1390

Spreadsheet Calculations:

Abstract

CEMEX, Mexican origin, cement company has started to move and compete global giant competitors like

Holderbank and Lafarge. Where, competitors like Holderbank operate in 50 countries while CEMEX in 15

countries. CEMEX has expanded on the basis of the ring of grey gold, seeking for demand and opportunities.

CEMEX is very successful with its strategies of acquisition and seeking opportunities. Using these strategic

moves it has figured out China and India as the next destination. Where, India presents a greater opportunity

for success. CEMEX was successful for being the first mover so; it should identify opportunities to be the first

mover, looking deeply in cost structures, government regulations, sea routes and demand or the population

of the country.

 

Questions Covered 

1. What benefits have CEMEX and other global competitors in cement derived from globalization? More

broadly, how can cross border activities add value in an industry as apparently localized as cement?

2. How specifically has CEMEX managed to outperform its leading global competitors in the cement

industry? Please focus on comparing it with Holderbank, which is the other large competitor

principally focused on cement. What do this comparison and other data in Exhibits 4-8 suggest

about competitive game being played out among the major international competitors?

3. What accounts for the sequence in which CEMEX entered foreign markets? How do the markets it

has entered recently compare with the markets that it entered early on?

4. What recommendations would you make to CEMEX regarding its globalization strategy going

forward? In particular, what kinds of countries should it focus its future expansion on? (No use of

external sources, just the case)

What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement?

- Reduction of tariffs associated with exporting - Due to internationalization these companies have been able to spread their risk. Therefore, if one market is not performing they can rely on the other   (diversification) - Talent across markets- Ability to identify new emerging markets and having advantage of an already set up network system- Proximity to raw materials gives benefits on distribution channel which is already organized by formers. This also gives an added advantage in reducing transportation costs - Advantage of distribution and delivery process through sophisticated information systems