CEMEX is a Mexican multinational building materials company that is one of the largest cement producers in the world. Through acquisitions in Mexico in the 1960s-1980s and expansion into international markets, CEMEX grew to become a top global cement producer. The document discusses benefits of globalization for CEMEX and other cement companies, strategies CEMEX used to outperform competitors internationally, and recommendations for CEMEX's further global expansion.

1. Globalization of CEMEX-
Case Analysis by Group 3
Shashank Dhruva – 20DM194
Shreeya Mukherjee – 20DM200
Shruti Agarwal – 20DM206
Smrithi Hemraj – 20DM212
Subhadeep Guha – 20DM218
Tanvi Batra – 20DM224

2. About CEMEX-
• CEMEX, is a Mexican multinational building materials company
headquartered in San Pedro, near Monterrey, Mexico.
• CEMEX is one of the three largest cement companies in the world
with more than 65 million metric tone of production capacity.
• In the 1960s CMEX grew significantly when it acquired several
more plants throughout Mexico.
• In 1976 CEMEX became the largest cement producer in Mexico
with the purchase of three plants from Cementos Guadalajara.
• Further acquisitions of Mexican Cement companies such as
Cementos Anahuac, Cementos Tolteca were made in 1987 and
1989 making CEMEX one of the 10th largest cement companies in
the world.
• In 2020 CEMEX was the leader in Mexican market.

3. Question 1: What benefits have been derived by CEMEX and other
cement industry from globalization?
Following benefits have been derived by CEMEX and other cement industry from globalization
Diversification.
Decreasing cost.
Technology improvement
Generating knowledge

4. Question 2: How do the firms from the domestic type of industry derive
added value from globalization?
Following are the point by which firms from the domestic type of
industry derived added value from globalization-
• Mitigation of risk.
• Access to local resources and capital accumulation.
• No local adaptation.
• Market share.
• Plant operational efficiency.
• Better management and organizational practice.
GLOBALIZATION

5. Question 3 : How CEMEX did outperformed its global
competitors?
They are different factors by which CEMEX outperformed its global
competitors-
• Successful acquisitions.
• Focus on growth in emerging markets. Not only in cement also in
cement-related businesses
• estimated that their weighted average growth rate was approximately -
4% for the countries in which they worked, while Holderbank and the
other cement players has lower growth rate.
• Became one of the first informal construction providers–bagged cement
for retail sales.
• Technology innovation that improve the customer satisfaction.
• Developed a platform to keep regional managers up-to-date with each
department's activities on a monthly basis.

6. Question 4: 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?
Negative:
• Sales of Holderbank is 37% higher than CEMEX.
• Sales volume are also higher in case of Holderbank which is almost 50% more than CEMEX.
• Market value of Holderbank is US$ 11,112, whereas CEMEX’s was US$ 7,203 which is lower.
• Capacity-wise and in number of operated country Holderbank is leading.
Positive:
• In case of EBIT margin CEMEX beats Holderbank as EBIT percentage of CEMEX is 30% whereas
Holderbank is 14%.
• The profitability of stock for CEMEX is way more than Holderbank.
• From exhibit 5 and 8 we can see that CEMEX performs well in South-East Asian countries than Holderbank.
• CEMEX were having a higher margin as compare to Holderbank as its value per ton is US$109 as compare
to US$107 for Holderbank.

7. Question 5: What entry strategies are followed by CEMEX in its
globalization?
Following are the entry strategies followed by CEMEX in its globalization-
Opportunity identification
Due diligence
Post – Merger Integration
(PMI) process
Integrated management

8. Question 6: Is there a major difference in the country contexts entered
by CEMEX in early and subsequent markets?
• Cemex moved from high GDP developed nations to emerging
countries.
• Their focus shifted to countries with large populations and high
growth rate.
• They targeted different continents for geographic expansions and not
neighboring countries.
• they acquired market leaders in the targeted countries to eliminate
major competition

9. Question 7: 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 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.
• Before entering a country, CEMEX should consider the following parameters.
a) Cultural barriers
b) Geographical factors such as length of coastline
c) Macroeconomic environment
d) Existing Competitors
• They should try to expands more in African countries.
• Diversify into service sector.
• They should adopt sustainable development strategy.