This ppt explains how and why Cemex has edge over it's competitors. This explains the strategy Cemex follows and how globalisation has helped Cemex to grow.

1. The Globalization of
CEMEX
Group 9

2. ABOUT US
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3. BENEFITS A CEMENT MANUFACTURER CAN
DERIVE FROM GLOBALIZATION
• MITIGATION OF RISK: CEMEX WAS ABLE TO COUNTER ANTI-DUMPING DUTIES IN US AN PESO CRISIS IN HOME
COUNTRY DUE TO ITS INTERNATIONAL EXPANSION EFFORTS
• NO LOCAL ADAPATION: CEMENT DOESN’T REQUIRE LOCAL ADAPTATIONS. CEMEX AND COMPETITORS COULD RELY
ONTHEIR MANUFACTURING, OPERATIONS AND MANAGEMENT EXPERTISE IN THE BUSINESS
• MARKET SHARE: MAJOR SIX COMPETITORS EXPANDED INTO NEW MARKETS.
• PLANT OPERATIONAL EFFICIENCY: GLOBALIZATION PROVIDES ROUTE TO EXPORT SURPLUS PRODUCTION. BECAUSE
OF INTERNATIONAL EXPANSION CEMEX WAS ABLE TO HAVE EBITDA TO SALES RATIO HIGHER BY 10-15% AS
COMPARED TO COMPETITORS
• BETTER MANAGEMENT AND ORGANIZATIONAL PRACTICES: ORGANIZATIONS WITH INTERNATIONAL STRATEGY
DEVELOP BETTER AND HAVE GLOBALLY ACCEPTED MANAGEMENT PRACTICES AND BUSINESS MODELS. THIS
ENHANCES THE MANAGEMENT EXPERIENCE.
• ACCESS TO LOCAL RESOURCES AND CAPITAL ACCUMULATION: CEMEX USED SEVILLS PLANT TO ITS MAXIMUM
CAPACITY,IT COULD ACCUMULATE RELEVANT CAPITAL FOR FURTHER INVESTMENTS

4. Entry Strategies followed by CEMEX in Globalization
After becoming a market leader in Mexico with 64.6% of capacity shares, it
began globalization with exports to the United States.
1. Exporting
 High Entry Barriers
 High Cost Transaction
 Lower Control
 Limited Risk
4 ADD A FOOTER MM.DD.20XX
2. Acquisition  Quick Access to new market
 Shared resources
 Shared risks
 Problem of integration

5. 5
OVERALL ENTRY BARRIER IS HIGH > EXPORT MM.DD.20XX
ENTRY BARRIERS
Barriers to New Entrants Parameters
Product Differentiation Low
Access to Channel Easy
Capital Requirement Large
Access to Technology Restricted
Access to Raw Materials Easy
Expected Retaliations High
Government protection against entry Substantial

6. ACQUISITION
 After imposition of trade sanctions by US, FDI has become an important option for CEMEX.
 Believed in “brownfield” plants rather than “greenfield” plants.
 1992- Acquired Valenicana and Sanson in Spain; became world’s fifth largest cement producer.
 1993-94- Acquired plants in Latin America.
 1994- Venezuela, Panama, Texas.
 1995- Acquired Cementos Nacionales in the Dominician Republic.
 1996- By acquiring a majority stake in Columbia became world’s third largest cement company.
 1997- 30% stake in Rizal company of Philippines.
 1998-99- Acquired additional stake in Indonesia and Philippines
 1999- Egypt, Chile, Costa Rica.
 2000- Availability of $1.176 billion for global acquisitions.
MM.DD.20XX

7. BILLION
Section 1
Title
BILLION
Section 2
Title
BILLION
Section 3
Title
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malesuada libero, sit amet commodo magna eros quis urna. Nunc viverra
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MM.DD.20XX
27%
40%
23%
10%
Africa/Middle East
Asia *
Europe
Latin America & Caribbean
CEMEX CAPACITY SHARE
* Excluding China

8. THANK YOU!
Questions????