31, 12, 2003
From the Department of CORPORATE CORPORATE STRATEGY STRATEGY AND AND INTERNATIONAL INTERNATIONAL BUSINESS BUSINESS
ASE E STUDY STUDY SERIES SERIES
CEMEu: Innovation in Housing for the Poor
CEMEu is a multinational cement manufacturing company out of Mexico. It is the largest cement manufacturer in Mexico, the second largest in the USA and thirdJlargest cement company in the world. The company has operations in four continents and has recorded global revenues of $6.54 billion in 2002 with a gross margin of 44.1%.
THE INNOVATION. . .
CEMEX leads the paradigm shift of companies profitably providing housing for the poor, the Tier 4 population, instead of governments or not-for-profit organizations.
CEMEu manufactures and sells raw cement, readyJmix concrete, aggregates, and clinker (used to make cement) under different brand names. As the largest cement company in Mexico, CEMEu operated in a highly protected legal environment with little competition until the 1990s. It competed mainly on price and controlled 65% of the market share in Mexico. However, during the 1990s, the legal barriers in Mexico broke down, paving the way for international competition. CEMEu found itself operating in a highly competitive open
This This report report was was written written by by Ajit Ajit Sharma, Sharma, environment. Sharmilee Mohan and Sidharth Singh under
Starting in 1987, under the leadership of Mr. Lorenzo wambrano, the supervision of Professor C.K.Prahalad.
CEMEu experienced explosive growth, mainly through acquisitions The reports are intended to be catalysts for and global expansion. Today, the company has 235 cement and ready discussion and are not intended to illustrate mix plants in Mexico, 60 in the