Cemex Essay

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Case study: The Globalization of CEMEX Introduction CEMEX, Cementos Mexicanos in Spanish, is a Mexican cement company founded in 1931 after a mergence between Cementos Hidalgo and Cementos Portland Monterrey. It became Mexico’s market leader by the early 1980s. After having secured its leadership in Mexico, CEMEX began to look for opportunities beyond Mexico’s borders. By the end of 1999, CEMEX operated cement plants in 15 countries, owned production or distribution facilities in a total of 30, and traded cement in more than 60. CEMEX’s sales revenues had increased from less than $1 billion in 1989 to nearly $5 billion in 1999, and it had become the third largest cement company in the world in terms of capacity, as well as the largest international trader. After determining what were the benefits of globalization for CEMEX and its main competitors we are going to analyze CEMEX’s strategy to success in its business. Indeed, we will focus on comparing its strategy with that from a other larger competitor, Holderbank. Then we will analyze more precisely what are the steps of CEMEX's strategy to enter different markets, and especially how these steps have evolved over time. Finally, we will make some recommendations to CEMEX regarding its globalization strategy and propose selection criteria for future markets. 1) What benefits have CEMEX and the other global competitors in Cement Industry derived from globalization? The globalization and the liberalization of trade are responsible for the opening of the countries to the external world. CEMEX and its competitors profit from 2 kinds of benefits: * Economic benefits: * When the domestic market is saturated you can seek a new market outside to sell the surplus production for example and increase your profit. Indeed, as cement is a mature product with no radical innovation possible the companies have

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