2. About Cemex
• Founded with the opening of Cementos Hidalgo in
1906
• CEMEX is one of the three largest cement
companies in the world , with more than 65 million
metric tons of production capacity
• Cementos Portland Monterrey began operations in
1920 and in 1931 the two companies merged and
became CementosMexicanos.
• In the 1960s , CEMEX grew significantly when it
acquired several more plants throughout Mexico.
• Further acquisition of Mexican cement companies
were made in 1987 and 1989
• In year 2020 CEMEX was the leader in Mexican
market
3. What benefits have been derived by CEMEX and other cement
industry from globalization?
Mitigation of Risk
Access to local resources and capital accumulation
No local adaption
Market share
Plant operational efficiency
Better management and organizational practices
4. How do the firms from the domestic type of industry derive added
value from globalization?
Diversification
Economies of Scale
Cross border investment
Technological up gradation
New Customer Segments
Research and Development
Access to local resources
Minimal Local Adaptation
5. How CEMEX did outperformed its global competitors?
CEMEX made successful acquisitions
Focused on growth in emerging
markets
Planning and implementing strategies
Performance indicators
6. How do Holder bank compare with CEMEX? What does the
comparison of data from exhibit 4.8 suggest about the competitive
game played out in global cement industry?
CEMEX estimated weighted average growth at 4% , Holder bank estimated
2% or 3%
CEMEX has 12.12 % higher capacity as compared to Holder Bank
CEMEX comes third in terms of revenue in global market
CEMEX become first informal construction providers – bagged cement for
retail sales
CEMEX technology innovation improved customer satisfaction
CEMEX developed a platform to keep regional managers up to date with
department activities.
7. What entry strategies are followed by CEMEX in its globalization?
Acquisition
Quick Access to new market
1985-1988 US/ Canada
1992 Valenciana & Sanson
Exporting
1970 Entry into US market
Latin America- Major international move
Licensing, Franchising and Strategic
alliances & Joint Venture
Foreign Direct Investment
8. Is there a major difference in the country contexts entered by
CEMEX in early and subsequent markets?
Expansion through acquisition rather than
distribution
Target shifted from neighbouring countries to
different continent for geographic expansion
Focus shifted to new segment like large population
countries and countries having high population
growth
Touching untapped markets where the consumption
was low with addition of risk factor
9. What strategy would you recommend for further globalization
of CEMEX? What kind of countries it should target for future
expansion?
• Cemex should establish a globalized culture.
• Global presence of CEMEX is very low in comparison to competitors
• CEMEX has presence only in 15 countries
• Invest in Research & Development and quality initiatives
• Continue to use IT
Countries and region to focus on-
China
BRICS nation and countries
High growth countries like Korea , India and Thailand