Patrimonio Hoy: A Scalable Business Model for Inclusive Housing?

Published 24 Sep 2018
Reference 6401
Region South America
Summary

CEMEX is a leading global player in the cement industry. Seeing an opportunity to increase its social impact while growing its emerging market business by addressing the latent demand for housing solutions among the low-income population, it launched a unique business initiative. A few years on, with data on the financial performance and growth of that unit, the time has come to decide whether or not to scale up in a big way.

Teaching objectives

This case provides an opportunity to discuss the commercial and impact potential as well as the unique challenges of trying to build a for-profit business initiative at the base of the pyramid, and how business model innovation can enable success. The case also provides rich financial data to carry out a full financial analysis of the initiative.

Keywords
  • Creating Shared Value
  • Emerging Market Strategy
  • Corporate Social Responsibility
  • Base of the Pyramid (BOP)
  • Sustainability
  • Business Model Innovation
  • Marketing
  • Sales & Distribution
  • Intrapreneurship
  • Microfinance
  • Financial Inclusion
  • Social Impact
  • Housing
  • Economic Development
  • Q118198