TAKING A MEXICAN COMPANY GLOBAL- THE CEMEX”

.    CEMEX Company can be classified under the world-stage aspirants. To start by definition, a world stage aspirant is a privately owned multinational that have got diversified geographical locations. These multinational enterprises also have the characteristics of product diversity in their operations. As in the case of CEMEX, it is a multinational enterprise that is located and operates in more than 50 countries. Some of these countries include Spain and the United States of America. To support the assertion, it is also important to note that CEMEX is a none-state-owned corporation. From the record, we can see that CEMEX came into existence after a merger between Cementos Hidalgo and Cementos Portland Monterrey that was formed by Lorenzo Zambrano. Being a none-state-owned corporation, it derived most of its funding from diversified stock exchange market including the United States of America in the form of foreign loans.

  1. Use of international expansion as a strategy towards compensating for competitive limitations. CEMEX Company, for example, invested in more developed countries such as Spain and the United States of America to gain some competitive advantages. In California, CEMEX Co bought an outstanding 50% share stake in the Southwestern Sunbelt Cement Company that owned a couple of concrete companies in Arizona. This move helped to introduce their products into the foreign market where the company sold its units at a very fair price. In Spain, CEMEX bought the biggest market cement producers at a price that made it to gain 25% of the market share in Spain. They enjoyed the countries high demand from the industrial and the commercial sector which later translated to a contribution of 9% to the corporation’s total net sales. Use of outward investment as a strategy to bypass trade barriers is another area of concern. To avoid scenarios such as what happened against CEMEX in California, the company opted for this strategy in the Europe market. In California, the Department of Commerce imposed an antidumping duty that saw a reduction in export by 30%.
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