IBTISAAMA YAHAYA AHMED
The cement industry is one of the most attractive industries as concrete is the second most consumed product in the world. The cement industry is however characterized by their pricing system (basing point system), its cartel nature and its entry restrictions. The CEMEX case depicts good business strategies, excellent leadership and how to be successful in the global market. The interesting aspect of the case is how CEMEX maneuvered in to the global market and was recognized as the third largest cement company. Thus, how it overcame the issues of trade sanctions, the crisis in its operating countries, its acquisition strategy etc. was astounding. CEMEX really understood the concept of globalization and International …show more content…
This was made easy because CEMEX established most of its plants by the port hence, transportation cost was cheap. In addition, CEMEX’s growth rate exceeded Holderbank and Lafarge after they all entered the Asian market. The estimated growth rate in Emerging market for CEMEX was 4% and Holderbank and Lafarge were 3% and 2% respectively. In analyzing exhibit 8, even though Holderbank had more stake in the Asian country; the price, capacity and value of ton of CEMEX outperformed that of Holderbank. The major competitors were all moving in the same direction at a point in time. They somewhat had similar strategies and were entering the same markets at almost the same …show more content…
The peso-crisis caused a recession in Mexico hence demand was declining. CEMEX restructured its strategy and begun to export its products in the United States. It faced lots of legal suits and trade restrictions so it limited its exports to the United States. However, CEMEX had already established a plant in Texas as well as distribution centers to facilitate its operations in the United States. Also, it exported its products in the United States through third parties. After, CEMEX established in Spain it faced recession in Spain as well. Its next move was Latin America precisely, Venezuela where it had to export a lot from Venezuela because their macroeconomy faced depression and demand was not improving. That is, instability of the Venezuelan macroeconomy made it export to the United States and moved into the Colombian market. The Colombia market was coupled with weak demand and price war which accounted for CEMEX to enter Chile and acquire stakes in the leading firms in Costa Rica, Dominican Republic and Panama. Most of CEMX’s move was due to crisis, economic depression or recession going on in their current operating countries. However, the situation was different for the Asian market. CEMEX and the other firms could enter the Asian market when they witnessed
The cement industry is one of the most attractive industries as concrete is the second most consumed product in the world. The cement industry is however characterized by their pricing system (basing point system), its cartel nature and its entry restrictions. The CEMEX case depicts good business strategies, excellent leadership and how to be successful in the global market. The interesting aspect of the case is how CEMEX maneuvered in to the global market and was recognized as the third largest cement company. Thus, how it overcame the issues of trade sanctions, the crisis in its operating countries, its acquisition strategy etc. was astounding. CEMEX really understood the concept of globalization and International …show more content…
This was made easy because CEMEX established most of its plants by the port hence, transportation cost was cheap. In addition, CEMEX’s growth rate exceeded Holderbank and Lafarge after they all entered the Asian market. The estimated growth rate in Emerging market for CEMEX was 4% and Holderbank and Lafarge were 3% and 2% respectively. In analyzing exhibit 8, even though Holderbank had more stake in the Asian country; the price, capacity and value of ton of CEMEX outperformed that of Holderbank. The major competitors were all moving in the same direction at a point in time. They somewhat had similar strategies and were entering the same markets at almost the same …show more content…
The peso-crisis caused a recession in Mexico hence demand was declining. CEMEX restructured its strategy and begun to export its products in the United States. It faced lots of legal suits and trade restrictions so it limited its exports to the United States. However, CEMEX had already established a plant in Texas as well as distribution centers to facilitate its operations in the United States. Also, it exported its products in the United States through third parties. After, CEMEX established in Spain it faced recession in Spain as well. Its next move was Latin America precisely, Venezuela where it had to export a lot from Venezuela because their macroeconomy faced depression and demand was not improving. That is, instability of the Venezuelan macroeconomy made it export to the United States and moved into the Colombian market. The Colombia market was coupled with weak demand and price war which accounted for CEMEX to enter Chile and acquire stakes in the leading firms in Costa Rica, Dominican Republic and Panama. Most of CEMX’s move was due to crisis, economic depression or recession going on in their current operating countries. However, the situation was different for the Asian market. CEMEX and the other firms could enter the Asian market when they witnessed