CEMEX is a leading global producer of cement, ready-mix concrete, aggregates, and clinker. Founded in Mexico in 1906, CEMEX has grown from a small regional player to one of the world's top cement companies through acquisitions and innovation in logistics, fuel supply, IT, and other areas. CEMEX's mission is to serve global building needs and create value for stakeholders by becoming the world's most efficient and profitable cement company.

2. ABOUT CEMEX
▪ CEMEX is a leading global producer and engaged in the production, distribution, marketing and
sale of cement, ready-mix concrete products, aggregates and clinker.
▪ Founded in Mexico in 1906, they have grown from a small regional player to one of the world’s top
cement companies. Today, they operate cement and related assets in more than 30 countries and
employ more than 25,500 people.
▪ Under CEO Mr. Zambrano, CEMEX has developed from a firm that was principal based in Mexico to
one that is global, both in its geographic scale and its product characteristics. This has been
achieved through a combination of innovation in logistics, fuel supply and IT, and acquisitions.
▪ CEMEX’s mission is to serve the global building needs of its customers and build value for its
stakeholders by becoming the world’s most efficient and profitable cement company
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3. What benefits have been derived by CEMEX and other cement industry from
globalization?
▪ Mitigation of risk
▪ Reduction of tariffs associated with exporting
▪ Increased market share
▪ Plant operational efficiency
▪ Better management and organisational practices
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4. How do the firms from the domestic type of industry derive added value from
globalization?
▪ Economies of scale
▪ New customer segments
▪ Research and Development
▪ Minimal local adaptation
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5. ▪ High level of commitment to customer service and satisfaction proven post-
merger integrating expertise
▪ Continued innovation
▪ Efficient production
▪ Ability to identify high growth marketing opportunities in developing economy
▪ High level of commitment from the dominant coalition which trickled down
the whole organization structure.
▪ High skilled labour with efforts to continually train their employees by
developing a virtual MBA Program.
How CEMEX did outperform its global competitors?
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6. How do Holderbank compare with CEMEX? What does the comparison of data from
exhibit 4.8 suggest about the competitive game played out in global cement industry?
▪ Holderbank is the largest operator in the cement industry with its operations in more
than 50 countries
▪ It started from Switzerland and expanded in neighboring countries like France,
Belgium and Netherlands.
▪ It followed the principle of making a hub, thus reducing interior supply chain and
other delivery costs.
▪ It focused primarily on cement and cement accounts for 68% of its sales.
▪ CEMEX started its operations from Mexico.
▪ Its primary focus was on cement and had expanded in many other things as well,
which were later removed and focus was put on cement. 6

7. Comparison of data from exhibit 4.8 :
▪ CEMEX became leader in Mexico with around 60% share by doing
some acquisitions after being threatened by Holderbank.
▪ CEMEX controls 64.6% of the Mexican market followed by covering
26.5% in Spain then, Venezuela and Indonesia with 40.6% and 43.7%
respectively. It has its presence in 15 countries
▪ Profits of CEMEX is higher whereas costs of Holderbank are higher.
CMEX stocks perform much better than Holderbank and therefore it is
a great threat to Holderbank
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8. What entry strategies are followed by CEMEX in its globalization?
▪ Exports:
▫ Entry into US and Spain
▫ Setting up distribution terminals
▪ Acquisition:
▫ Most frequently used strategy
▫ Through full acquisition or buying majority stake
▪ Post Merger-Integration Process
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9. Is there a major difference in the country contexts entered by CEMEX in
early and subsequent markets?
▪ Focus went from:
▫ high GDP countries to developing countries
▫ Exports to acquisitions
▪ Moved to countries with moderate temperatures
▪ Moved to countries with high population density and low
consumption
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10. 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. Currently, they are facing issues
with communication across regions, as language and cultural barriers exist.
▪ Global presence of CEMEX is very low in comparison to its competitors. They
should continue their strategy of expansion through global mergers and
acquisitions.
▪ Invest in R & D and quality initiatives for product differentiation, improving
processes, and reducing costs.
▪ Continue to use IT to leverage sales and operations capabilities, to reduce cost
and make efficient supply chain management
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11. Countries it should target are:
▪ Target China as 75% of Chinese production
is done in small, technologically obsolete
kilns
▪ They should focus on emerging markets
particularly BRICS nations and countries
with higher GDP because cement demand
is correlated with high GDPs.
▪ Focus on countries with high growth
Korea, India, Thailand, Philippines,
Malaysia, Poland, Turkey, Brazil 11

12. THANK YOU!
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