CEMEX’s Patrimonio Hoy: At the Tipping Point?

by: Ted London

Publication Date: April 13, 2012
Length: 25 pages
Product ID#: 1-428-606

Core Disciplines: Base of the Pyramid, International Business, Strategy & Management

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Teaching Note

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This case sets the stage for the 2012 case study “Constructing a Base-of-the-Pyramid Business in a Multinational Corporation: CEMEX’s Patrimonio Hoy Looks to Grow.” This revised 2006 case study explores Patrimonio Hoy in 2006, the sales, distribution, and savings program of CEMEX intended to serve Mexico’s large self-construction housing market. CEMEX is currently the world’s third largest cement producer. Over the years, Patrimonio Hoy has gone from a small, centrally-funded project to a US$25 million revenue generator for CEMEX. This case explores the initiative’s opportunities for growth and expansion into new markets.

Teaching Objectives

After reading and discussing the material, students should:

  • Explain the concept of the base (or bottom) of the pyramid (BoP) and surface implicit assumptions about the poor.
  • Discuss the core concepts in the BoP domain.
  • Assess CEMEX’s Patrimonio Hoy initiative and analyze whether or not it has developed native capability.