The Building Materials Industry in 2004

This background note analyses the global heavy building materials industry until 2004. It analyses the competitive landscape and the dynamics of demand and supply. It also looks at the different business models and recent mergers and acquisition trends in the industry, as well as introducing students to the strategic issues faced by firms in a mature commodity sector. It is designed to be used with the 5-part case series on CEMEX, the Mexican cement company (Cemex A, B, C, D, E, © 2008 INSEAD).

The industry note provides background information on: 1) The heavy building materials industry worldwide 2) The main materials concerned: cement, aggregate, ready-mix, concrete and asphalt 3) The most important players in the industry 4) Making entry or exit decisions 5) Developing competitive strategies It can be used as background information for the following cases • Casanova, L. & Hoeber, H., Cemex (A): Building a Global Latina. © 2008 INSEAD • Casanova, L. & Hoeber, H., Cemex (B): Evaluating RMC. © 2008 INSEAD. • Casanova, L. & Hoeber, H., Cemex (B): The Acquisition of RMC. Supplement I: Vertical Integration. 2008. © 2008 INSEAD. • Casanova, L. & Hoeber, H., Cemex (C): The Integration of RMC. © 2008 INSEAD. • Casanova, L. & Hoeber, H., Cemex (D): Quo Vadis? © 2008 INSEAD. • Casanova, L. & Hoeber, H., Cemex (E): Down After Down Under. © 2008 INSEAD.