Cementing the Bottom of the Pyramid: A New Direction at Cemex?

Abstract

This case details cement, ready-mix, and concrete giant CEMEX's consideration of a set of strategies designed to grow the Mexican market from the bottom of the economic pyramid: the low-income do-it-yourself homebuilders that characterized an untapped market there. Alfredo de Armas, VP of business development at CEMEX, must consider the needs and limitations of customers with no access to credit and a budget that might allow a purchase of just one bag of cement per week. What would it take to reach that market? Would doing so be profitable?

Excerpt

UVA-BP-0508

Cementing the Bottom of the Pyramid:

A New Direction at CEMEX?

We know we are no longer in the business of simply crushing stone or mixing concrete, if we ever were. We are in the business of helping our customers complete their projects, on time and on budget. When they succeed, we succeed.

—Lorenzo Zambrano, CEO, CEMEX

Learning how to expand the pie in Mexico will help us to create the platform for organic growth all over the world.

. . .

Keywords: Strategy, Economic Development, housing, Low-income consumers, organic growth