CEMEX Case Study

How did CEMEX fundamentally change the way it conducted its business?

• CEMEX fundamentally change the way it conducted its business by providing housing for the poor, the Tier 4 population, instead of governments or not-for-profit organizations.[1] 

How does information systems contribute to CEMEX' competitive advantage?

• Information system contributes by the luxury, precision and firmness of the flow of information for CEMEX to transfer their information. “A computerized delivery network in which every movement of every truck is monitored in real time, enabling on time delivery of cement and ready-mix to customers.”

What is social capital? How does CEMEX build social capital?

• Social capital is the trust, reputation, and participation in the community. [2]

How are the low-income savings characteristics of Mexican society characterized?

• They provide by giving communal funds for the poor.

How are the entrepreneurial characteristics of the women in Mexican society tied to the CEMEX BOP strategy?

• The entrepreneurial characteristics of the women in Mexican society tied to the CEMEX BOP strategy by giving away the power to encourage the market share.

What did the CEMEX initial market research in Guadalajara discover?

• They discovered it by knowing that there are much opportunities by providing loans to the poor.

What is the role of socios in the Patrimonio Hoy system? How important are they in the making the system successful?

• Base on the article, Socios are the actual customers who enroll in Patrimonio Hoy. The socios get together and form a group, restricted to three people. The reason for such a small group size is that it is easier to enforce payment discipline in a smaller group, and the group tends to form stronger relationships to help each other out during an emergency.[3]

Why do you think it was important for CEMEX to position itself as a complete solutions provider vs. just another product provider?

• Showing the solutions that they have, people were definitely be ready to finance in CEMEX's program.

How is the social capital of Patrimonio Hoy promoters related to economic capital?

• Promoters play a key role as ambassadors for Patrimonio Hoy. Ninety-eight percent of the promoters are women. They work on a commission basis that is dependent on the number of socios they help enroll and on the duration of the stay of the socio within the program.[4]

What, in brief, is the value of Patrimonio Hoy to a) its promoter b) its socios & partners c) its suppliers and d) its distributors?

• Patrimonio Hoy for promoters, they are given a big sum of money while being introduce to many people. Patrimonio Hoy for socios, they are benefited by getting their houses built as long as they are investing. Patrimonio Hoy for suppliers and distributors, they are benefited by having a lot of resources being bought on their stores.

What is patrimonio? Why is this important for the marketing efforts for the Patrimonio Hoy system?

• Patrimonio means “savings/property today.” It affects to have ancestors to have an opportunity to pass on their properties.

How can Patrimonio Hoy offer a slightly higher price than its competitors and maintain a competitive edge?

• CEMEX satisfy the needs of their cunsomers.

How does the concept of freezing prices encourage socios to do more business for Patrimonio Hoy?

• If prices were to adjust according to the economy, it will seem to socios that their quota is rising and that they have to invest further. For others, this sort of thing is highly discouraging and may lead to socios stopping from committing to the program.

As an IT practitioner looking at the Construmex business model, what IT-driven systems can you propose to make CEMEX more competitive?

• As an I.T practitioner, I suggest CEMEX to build the gap between the poor and the élite by introducing an IT solution that will surely last.

[1] CEMEX: Innovation in Housing for the Poor, p. 147

[2] CEMEX: Innovation in Housing for the Poor, p. 151

[3] CEMEX: Innovation in Housing for the Poor, p. 154

[4] CEMEX: Innovation in Housing for the Poor, p. 154