Globalization of CEMEX Case Solution

Case Solution

CEMEX can be a Mexican company that's a substantial worldwide competitor in cement and keep a better profitability than other, longer-established majors. CEMEX's superior profitability provides a cause for speaking about what causes superior performance in the global context. Furthermore, the plethora of benefits that CEMEX comes from its methods in a variety of nations increases conventional notions of why firms globalize.

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Questions Covered

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?