This case study illustrates the swift international expansion and transformation of Cemex, an emerging multinational from Mexico, into a Global Latina that has consolidated its position throughout its 'natural markets' to become the world's biggest building materials multinational. It provides an example of growth through acquisitions and shows how an emerging multinational conquers the world. The general objective is to study the growth and internationalisation strategies of Cemex with a special focus on: (1) international expansion through natural markets; (2) business model innovation (the 'Cemex way'); (3) strong leadership (Lorenzo Zambrano); (4) management in emerging markets; and (5) mergers and acquisitions and post-merger integration know-how.
Although owners retain full control of their stores and decision-making independence, they can count on CEMEX's years of experience as a global leader in building materials and reap the rewards of a network with over 2,100 stores in Latin America. CEMEX is the owner of the Construrama license, and affiliated distributors are given training and tools to improve efficiency and customer service. The Construrama model moves away from the large retail chain that seeks to replace locally-owned businesses. Instead, Construrama lends its image, brand name, and world-class experience to local businesses, allowing them to compete with the large chains while retaining their personal touch and close relationship with the community. CEMEX is one of the leading producers of cement in Costa Rica, where over two thirds of cement is sold at the retail level as bagged cement. The company also has ready mix concrete and aggregates operations in the country.
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