Cemex 's Globalization Benefits And Cross Border Activities Essay
CEMEX operates in the ‘not so export friendly’ globally concentrated cement industry, so, global expansion was an obvious choice for cement industry seeking geographic diversification. Globalization offered CEMEX and other Cement manufactures to enjoy various benefits such as i) empire building and growth via stabilized revenues, also benefiting from the arbitrage prices and economies of scale ii) export tariffs reduction and complete reduction in import tariffs in case of localized facilities iii)localization of cement production and distribution facilities closer to point of use changed the ‘global cement industry game’ with lower shipping costs, also resulting in improved delivery times and increased customer satisfaction.
CEMEX’s superior showing against Holderbank and other industry giants and its competitive edge on the global scene
Despite homogenous cement product with negligible cost differences, where R&D and marketing played very little role CEMEX managed to emerge as the third largest global cement player with impressive 21.4% EBITDA CAGR over 12 years period(Exhibit 1). Mr. Zambrano’s visionary leadership served as the basis CEMEX’s winning global strategy, which was centered around ‘aggregation’ and was efficiently managing the tensions between ‘arbitrage’ and ‘adaptation’ strategies. Unlike, Holderbank and other major players, CEMEX CEO’s early investments in IT and…