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CEMEX case study

Page history last edited by Ferline 15 years ago

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

CEmex fundamentally change the way it conducted its business by way of reaching out to poor people. We have seen that many businesses are targeting the rich people because they know that they can afford it, while poor people cannot afford to buy what they are selling.

 

In order to reach to people easily, they make a solution for the cement in order for poor people to buy that solution in a lower price. But even though it is cheaper, the solution has also quantity. They maintain their image as a good company and at the same time improve their  products and services by adhering to bottoms of the pyramid

 

2.    How does an information system contribute to CEMEX competitive advantage?

 

In order for them to give the people the solution easily, they have information system that would cut cost. They have information system that monitors the truck in real time so that they can see what is happening and avoid the risk that would happen outside the company.

 

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

Social capital means helping poor people by conducting business. They are serving poor people in order to have a good society. Also, helps the economy.

 

 

2.    How is the low-income savings characteristics of Mexican society characterized?

 

Poor people have saved much because of that products. They have use/ waste their money wisely in order to buy products which they can used. Just like the rich people, they collected their money so that if they are emergencies, they can use it and without a problem looking for money.

 

 

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

 

 

I think that the entrepreneurial characteristic of the women that was seen in the CEMEX was being thrifty in the products they will buy but at the same time has good quality. We used money wisely and if they are excess, we kept it. :)

 

 

  1. What did the CEMEX initial market research in Guadalajara discover?

They discovered that they can use clay and limestone for construction in Guadalajara.

 

7.

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

The role of socios in Patrimonio Hoy System is  like a guard that they restricts people from coming so that they can kept well the money of the poor people. Also, they form an organization in order for them to have a good relationship and thus they can give the trust to them/

 

 

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

 

Cemex is important to position itself as a complete solutions provider vs. just anohter product provider so that they can create good image not only to rich people but also especially to poor people. Everyone will love their business. Thus, they will earn more profit.

 

 

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

The more people use money wisely, the more people help their economy. Thus, the country will flourish.

 

 

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

 

a) They are the ones who promote their system in order for many people to join.

b) They will give their own money and help many people.

c) They are the ones who supply cement.

d) They can have giid relationship with their customers.

 

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

Patrimonio system creates a better society. If many would join, it will have a greater impact to the next/future generation.

 

 

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

 

Since patrimonio hoy creates a good relationship with the seller and the buyer. Thus, it would not be hard for the buyer and seller to agreed on a price that they will have advantage.

 

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

 

If there will be freezing price, it encourage the socios to sell their products at a lower price.

 

 

14. Intuitively, doing with business with a low income group would be riskier than traditional lending models but it is profitable for Patrimonio Hoy. Why?

 

 

Because the members or socios in the patrimonio system has achieved to have a good community. Thus, they make profit that risk.

 

 

. What is the role of peer/community pressure in the Patrimonio Hoy lending model?

 

The role of community pressure is they are the ones who manage and ask for people to pay their obligation.

 

16. How has Patrimonio Hoy changed the consumer behavior in Mexico?

Patrimonio Hoy changed the consumer behavior in Mexico by creating a trusted community through using commitment, and spending wisely their money.

17. What are the challengs of the Patrimonio Hoy program? *

The biggest challenge of the Patrimonio Hoy program is the issue of paying. It is hard for the socio to pay weekly for materials which they are selling. The problem is that if this socio will leave the community.

18. What does Construmex take advantage of the existing remittance market between U.S.A and Mexico? *

They create a good relationship with U.S.A and Mexico. In order for the remittances to have no problem.

 

19. CEMEX Philippines is exploring the possibility of replicating the Patrimonio Hoy system in the Philippines. What are the parallels between the Mexican and the Philippine market? *

I think the similarity between Mexican and Philippines is the problem of poverty. I think if Cemex Philippines will replicate the Patrimonio Hoy system, I think it will be a good investment since many Filipinos nowadays are finding a way to use their money wisely. It would be beneficial to many Filipinos especially of the problem in financial crisis.

 

20. As an IT practitioner looking at the Construmex business model, what IT-driven systems can you propose to make CEMEX more competitive? (name 10-15) *

I would propose the following system:

Inventory management system

fleet management system

decision support system

transaction processing system

knowledge work system

real time system

management information system

enterprise resource planning system

supply chain management system

e-commerce system

point of sale system

customer management system

 

 

 

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