What benefits have CEMEX and the 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?
CEMEX and the other global competitors certainly benefit from globalization. One beneficial
aspect of it is diversification; thanks to internationalization of the product, if one market fails,
they would be able to rely on the other. A very important factor was the reduction of tariffs,
which were associated with the exportation of their product; given that the manufacturer had a
localized facility, export tariffs would not be imposed on the delivery of cement. Also, information
systems have become more advanced, which allows to crate competitive advantage in the
distribution and delivery process.
Globalization also allowed for companies to reduce their costs. For example, by placing plants
in each country they have presence, they could lower delivery price. Furthermore, cross-border
activities can add value because the cement industry is highly sensitive to changes in the GDP.
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.
CEMEX is a smart corporation and they have always known what to do to be in good standing.
In order to outperform competitors they made acquisitions, which turned out to be successful.
The company employed innovation in the sense of applying new things to their business
strategy; they did not create something new but instead, it was innovative because it was new to
them and to their industry. Some credit needs to be given as well to Mr. Zambrano, the CEO of
the company for over 20 years, for being such a smart and talented business person. Since he
started in the company, he invested lots of resources in Information Technology, which provided
the company with a first mover advantage whenever it came to technology. The winning point
for CEMEX as opposed to Holderbank is owed to the fact that CEMEX had an awesome
geographic diversification strategy; also, it was not only a cement business, but instead cement
and cement-related businesses. The company applied a successful strategy of growth through
acquisitions, which took them to the next level by being able to operate easier and with lower
costs.
What recommendation would you make to CEMEX regarding its globalization strategy
going forward? In particular, what kinds of countries should it focus it future expansion
on?
The first thing CEMEX has to do is to research and become more informed about opportunity
identification, due diligence, and post-merger integration when going into countries with a dense
population and a high population growth that maintaining a relatively low level of consumption. I
agree with CEMEX’s interest in the Caribbean Basin, South East Asia, and the Mediterranean.
Furthermore, instead of only analyzing geographical areas, I would study independent
countries. Such is the case of China, with their awesome levels of growth and advancement in
their economy and politics, it might be a good idea for expansion. Another territory that I
consider a great expansion opportunity would be India. That country has growth and has not
been developed yet so it would be really good to have a first mover advantage. Adding to it, the
country is still growing and changing and the faster the company moves into it, the easier it will
be to take over the market. Dubai and the Arab Emirates also have a lot of potential, even
though the area has already been exploded, I believe there is still a lot of gold to get from that
mine.