economy opened up, it made the cement industry vulnerable to foreign threats. Due to this foreign competitors such as Holderbank and Lafarge, CEMEX needed to diversify geographically to grow and survive. Secondly, by acquiring two big cement companies at the end of 1980s, CEMEX owned already a big market share of the Mexican cement market, which made the growth in its domestic market not appealing anymore. Third, CEMEX wanted to fight against the seasonality of the cement Mexican industry and lower its
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Case 1 CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX's position in the global cement industry? First, the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus, the expansion of the scale of the company is very critical to enhance the competitiveness, especially the international
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CEMEX: GLOBAL GROWTH THROUGH SUPERIOR INFORMATION CAPBILITIES 1. CEMEX is a cement company. What are the sources of competitive advantage in the cement industry? What is CEMEX's position in the global cement industry? First, the cement business is cyclical. The uncertainty of the number of demand and sales restricts a cement company to gain profits stably. Thus, the expansion of the scale of the company is very critical to enhance the competitiveness, especially the international expansion
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Key facts of the third largest Cement producer „Cemex“ worldwide Name Industry Products CEMEX Building materials Cement Ready-‐ mix concrete Construc8on aggregate 1906 San Pedro Garza Garcia, Mexico Lorenzo Zambrano 54,635 In 50 countries Founded Headquarters CEO Employees Opera8ons Revenue Mean facts
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Investment In little more than a decade, Cemex, Mexico’s largest cement manufacturer has transformed itself from a primarily Mexican operation into the third largest cement company in the world behind Holcim of Switzerland and Lafarge Group of France with 2007 sales of $21.7 billion and more than $2.6 billion in cash flow. Cemex has long been a powerhouse in Mexico and currently controls more than 60 percent of the market for cement in that country. Cemex’s domestic success has been based in large
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Coal fired power plants- Coal accounts for nearly 50 percent of the electricity generated in this country—and almost 50 tons of mercury emissions annually. o Cement kilns- all the cement kilns in the U.S. combined pump out roughly 23,000 pounds of mercury every year. The group released a report last July finding that, individually, some cement kilns emit nearly one and a half times more mercury than the most polluting coal-fired power plants. o Trash incinerators. Hazardous waste, medical waste, and
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years ago in El Salvador market via trading (importing cement from Mexico) from its plant in Merida, Yucatan. The El Salvador market was a potential market with only one competitor, Cementos del Salvador, which eventually was acquired by Holcim ( Second world largest cement producer). This market was worth annually 100 million dollars and only one company was supplying cement in this country. During these first years, CEMEX provided cement from Mexico by sea and train maintaining its presence
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fifth as competition intensifies in UAE. RELATED ARTICLES: Union Cement Company third quarter net falls 51% | UAE competition forces Oman cement price down 25% | RAK Cement posts US$1.07m loss on tighter market Union Cement Company said it made a net loss of AED 22.3 million last year, with sales declining just over a fifth against 2009, as values and volumes of orders evaporated returns. The Abu Dhabi-listed maker of cement and clinker said the loss compares to an AED 65.1 million net profit
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World’s 3rd largest Cement Producer and Trader from Mexico Global growth through IT innovations and aggressive aquisition strategy “Wouldn't it be great to strike back in Spain and take control of its cement sector five hundred years after the Spaniards conquered Mexico?” Lorenzo Zambrano CEO of CEMEX, 1992 CEMEX aquired the two largest Spanish cement producers Hiring “High Potential People“ In reality young and inexperienced people willing to work insane hours to achieve financial
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prepare for it. We have learned how to profit from it. Lorenzo Zambrano, CEO of CEMEX.1 In 1990, Cementos Mexicanos was a Mexican cement company that faced trade sanctions in its major export market, the United States. By the end of 1999, CEMEX operated cement plants in 15 countries, owned production or distribution facilities in a total of 30, and traded cement in more than 60. Non-Mexican operations accounted for nearly 60% of assets, slightly over 50% of revenues and 40% of EBITDA (earnings
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