CEMEX is company that has its roots in Mexico,and has become an important global player in the cement industry. The company has successfully sustained profits higher than the other stronger players, who had been in the industry f a longer period of time. CEMEX’s higher profit generation ability provides ground for discussing and thinking over the reasons that lead to a higher performance in an international scenario. Further, the broad number of benefits that CEMEX draws from its activities in different national settings supports and elaborates on the argument favoring the globalization of companies.
1. What benefits have CEMEX and other global competitors in cement derived from globalization? More broadly, how can cross border activities add value in an industry as apparently localized as cement?
2. How specifically has CEMEX managed to outperform its leading global competitors in the cement industry? Please focus on comparing it with Holderbank, which is the other large competitor principally focused on cement. What do this comparison and other data in Exhibits 4-8 suggest about competitive game being played out among the major international competitors?
3. What accounts for the sequence in which CEMEX entered foreign markets? How do the markets it has entered recently compare with the markets that it entered early on?
4. What recommendations would you make to CEMEX regarding its globalization strategy going forward? In particular, what kinds of countries should it focus its future expansion on?