Cemex Case

d) What recommendations would you make to CEMEX regarding its globalization strategy going forward? In particular, on what kind of countries should it focus its future expansion? CEMEX expansion is a process where the company performs its due diligence and the aim of expanding into a country with a large population and high population growth. As the text stated CEMEX should continue to focus on developing Asian economies, Central America, the Caribbean and Sub-Saharan Africa.
CEMEX should keep its eye on China even though the cement was produced via obsolete kilns by authorities. However, China’s had tremendous growth and ever changing political environment. India is another tremendous area of growth and many competitors also recognize this. CEMEX should aim to get a foothold in this market as it will continue to grow and its restructuring process was more advanced than China’s. Even though there are some barriers to entry CEMEX should keep its eye on Brazil as well.
Brazil’s population is nearly 191 million and even though the main language is Portuguese, Spanish is a major language which is also taught in the schools as this will help entry into the country. CEMEX should look at other emerging Latin American markets with growing with growing populations, especially since they speak Spanish. Lastly the Middle East, especially Dubai and the Arab Emirates should be on CEMEX’s radar due to the growth of these areas due to its oil riches and recent growth. However these areas should be carefully studied due to the political environment.