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Construmex: housing investments for Mexican migrants and their families

Construmex: housing investments for Mexican migrants and their families Purpose – The purpose of this paper is to explore the challenges and implications related to the integration of low‐income customers into the strategy of CEMEX, one of the world's largest building materials companies. Design/methodology/approach – A case study with data from interviews of a wide variety of stakeholders as well as observation and review of company documents. Findings – Construmex was launched following CEMEX's experience with Patrimonio Hoy , a socially minded business targeted at low‐income families. Since its inception in 2001, Construmex helped more than 14,000 Mexican migrants in the USA improve, build or buy a house for themselves or their families in Mexico. Through a comprehensive value proposition, Construmex provided access to remote sales, micro‐credit and professional design and planning assistance. Practical implications – Among early barriers was an initial overconfident approach from the company, as well as a low level of trust from potential clients. The program's success was possible through the establishment of key partnerships. By playing an intermediary role between migrants and their beneficiaries in Mexico, Construmex helped to increase the resource efficiency and effectiveness of housing investments. Migrants gained control of the destination of their money and saved time and resources. Among unsolved challenges was the need to reach a larger scale and financial sustainability. Opportunities to strengthen impacts were related to improved engagement of salespersons, local distributors and beneficiaries. Originality/value – The case provides insights on how a low‐income market can be integrated to the business strategy of a large company resulting in the creation of social and business value. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Enterprising Communities: People and Places in the Global Economy Emerald Publishing

Construmex: housing investments for Mexican migrants and their families

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Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-6204
DOI
10.1108/17506201111119581
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to explore the challenges and implications related to the integration of low‐income customers into the strategy of CEMEX, one of the world's largest building materials companies. Design/methodology/approach – A case study with data from interviews of a wide variety of stakeholders as well as observation and review of company documents. Findings – Construmex was launched following CEMEX's experience with Patrimonio Hoy , a socially minded business targeted at low‐income families. Since its inception in 2001, Construmex helped more than 14,000 Mexican migrants in the USA improve, build or buy a house for themselves or their families in Mexico. Through a comprehensive value proposition, Construmex provided access to remote sales, micro‐credit and professional design and planning assistance. Practical implications – Among early barriers was an initial overconfident approach from the company, as well as a low level of trust from potential clients. The program's success was possible through the establishment of key partnerships. By playing an intermediary role between migrants and their beneficiaries in Mexico, Construmex helped to increase the resource efficiency and effectiveness of housing investments. Migrants gained control of the destination of their money and saved time and resources. Among unsolved challenges was the need to reach a larger scale and financial sustainability. Opportunities to strengthen impacts were related to improved engagement of salespersons, local distributors and beneficiaries. Originality/value – The case provides insights on how a low‐income market can be integrated to the business strategy of a large company resulting in the creation of social and business value.

Journal

Journal of Enterprising Communities: People and Places in the Global EconomyEmerald Publishing

Published: Mar 29, 2011

Keywords: Mexico; Housing; Social inclusion; Migrant workers; Microeconomics; Shareholder analysis

References