Cemex Case Summary

In: Business and Management

Submitted By wayne1845
Words 358
Pages 2
This article was about how CEMEX has become a world leader in the cement market. The article starts off with a short history of cement itself and how cement has evolved over time as the world has grown. It demonstrated nicely how cement companies have to streamline production, as the product itself is being improved and copied constantly. The article then goes into a brief description of other cement companies in the world, showing how regionalized the cement industry is.

After this, the article then gives a brief history on CEMEX. CEMEX had humble beginnings in the early 20th century, and is still run by a member of the Zambrano family to this day. CEMEX realized that it had to expand outside of Mexican borders, so it began exporting to the southern US; as the two economies are intertwined, it made sense to start there. After a while, CEMEX acquired an American company to fill US orders. This set off a chain of global acquisitions, which ended up making CEMEX the world leader in the cement industry, as well give them a presence on every continent and in over 50 markets.

CEMEX maintained its market dominance through its 3 pillars of people, technology and growth. The people pillar focuses on CEMEX taking care of its employees, customers and people who live around the plant. Technology is focused on how CEMEX adds value to its product by cutting down on time and costs through its advanced use of IT. The growth pillar is about how CEMEX only acquires firms that open a new market or help consolidate current operations in a market and can be acquired for a price that promises to give CEMEX a great return on investment.

They also make a conscious effort to cut down on environmental pollution, as the cement industry is a notorious polluter. They constantly make an effort to rebuild the environment after they are done getting the raw materials…...

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