The paper presents the results of an analysis of the cement industry in Croatia by using the Porter's model of five competitive forces. The methodological approach is based on collecting and processing relevant secondary data and on conducting primary research by using the survey method. Based on the results of quantitative research, the intensity of competitive forces in the cement industry in Croatia is rated weak to moderate which makes the industry averagely attractive. This is the result of the bargaining power of buyers which is rated medium to strong, of the intensity of rivalry among existing companies which is rated medium, of the bargaining power of suppliers which is rated medium, of the low-rated threat of substitute products or services and of the low-rated risk of potential entrants. The analysis of secondary data confirms such results. Based on the results of the analysis, important strategic initiatives are identified for improving the industrial structure and competitive position of companies in the Croatian cement industry: continuity of high quality products, cost efficiency, investing in new technology, partnerships with customers and suppliers, strengthening logistic activities and own distribution channels, and cooperating with government bodies.