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CEMEX's Patrimonio Hoy: At the Tipping Point? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of CEMEX's Patrimonio Hoy: At the Tipping Point?


This case sets the stage for the 2012 case study "Constructing a Base-of-the-Pyramid Business in a Multinational Corporation: CEMEX's Patrimonio Hoy Looks to Grow." This revised 2006 case study explores Patrimonio Hoy in 2006, the sales, distribution, and savings program of CEMEX intended to serve Mexico's large self-construction housing market. CEMEX is currently the world's third largest cement producer. Over the years, Patrimonio Hoy has gone from a small, centrally-funded project to a US$25 million revenue generator for CEMEX. This case explores the initiative's opportunities for growth and expansion into new markets.

Authors :: Ted London

Topics :: Innovation & Entrepreneurship

Tags :: Social responsibility, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "CEMEX's Patrimonio Hoy: At the Tipping Point?" written by Ted London includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hoy Patrimonio facing as an external strategic factors. Some of the topics covered in CEMEX's Patrimonio Hoy: At the Tipping Point? case study are - Strategic Management Strategies, Social responsibility and Innovation & Entrepreneurship.


Some of the macro environment factors that can be used to understand the CEMEX's Patrimonio Hoy: At the Tipping Point? casestudy better are - – challanges to central banks by blockchain based private currencies, increasing energy prices, increasing inequality as vast percentage of new income is going to the top 1%, central banks are concerned over increasing inflation, geopolitical disruptions, banking and financial system is disrupted by Bitcoin and other crypto currencies, talent flight as more people leaving formal jobs, digital marketing is dominated by two big players Facebook and Google, wage bills are increasing, etc



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Introduction to SWOT Analysis of CEMEX's Patrimonio Hoy: At the Tipping Point?


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in CEMEX's Patrimonio Hoy: At the Tipping Point? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hoy Patrimonio, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hoy Patrimonio operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of CEMEX's Patrimonio Hoy: At the Tipping Point? can be done for the following purposes –
1. Strategic planning using facts provided in CEMEX's Patrimonio Hoy: At the Tipping Point? case study
2. Improving business portfolio management of Hoy Patrimonio
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Hoy Patrimonio




Strengths CEMEX's Patrimonio Hoy: At the Tipping Point? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Hoy Patrimonio in CEMEX's Patrimonio Hoy: At the Tipping Point? Harvard Business Review case study are -

Training and development

– Hoy Patrimonio has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in CEMEX's Patrimonio Hoy: At the Tipping Point? Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.

High brand equity

– Hoy Patrimonio has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hoy Patrimonio to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

Low bargaining power of suppliers

– Suppliers of Hoy Patrimonio in the sector have low bargaining power. CEMEX's Patrimonio Hoy: At the Tipping Point? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hoy Patrimonio to manage not only supply disruptions but also source products at highly competitive prices.

Digital Transformation in Innovation & Entrepreneurship segment

- digital transformation varies from industry to industry. For Hoy Patrimonio digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hoy Patrimonio has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.

Superior customer experience

– The customer experience strategy of Hoy Patrimonio in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Analytics focus

– Hoy Patrimonio is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Ted London can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.

Strong track record of project management

– Hoy Patrimonio is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

Innovation driven organization

– Hoy Patrimonio is one of the most innovative firm in sector. Manager in CEMEX's Patrimonio Hoy: At the Tipping Point? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.

Ability to lead change in Innovation & Entrepreneurship field

– Hoy Patrimonio is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Hoy Patrimonio in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Ability to recruit top talent

– Hoy Patrimonio is one of the leading recruiters in the industry. Managers in the CEMEX's Patrimonio Hoy: At the Tipping Point? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Sustainable margins compare to other players in Innovation & Entrepreneurship industry

– CEMEX's Patrimonio Hoy: At the Tipping Point? firm has clearly differentiated products in the market place. This has enabled Hoy Patrimonio to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Hoy Patrimonio to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Hoy Patrimonio has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study CEMEX's Patrimonio Hoy: At the Tipping Point? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.






Weaknesses CEMEX's Patrimonio Hoy: At the Tipping Point? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of CEMEX's Patrimonio Hoy: At the Tipping Point? are -

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Hoy Patrimonio supply chain. Even after few cautionary changes mentioned in the HBR case study - CEMEX's Patrimonio Hoy: At the Tipping Point?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hoy Patrimonio vulnerable to further global disruptions in South East Asia.

Aligning sales with marketing

– It come across in the case study CEMEX's Patrimonio Hoy: At the Tipping Point? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case CEMEX's Patrimonio Hoy: At the Tipping Point? can leverage the sales team experience to cultivate customer relationships as Hoy Patrimonio is planning to shift buying processes online.

Slow to strategic competitive environment developments

– As CEMEX's Patrimonio Hoy: At the Tipping Point? HBR case study mentions - Hoy Patrimonio takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study CEMEX's Patrimonio Hoy: At the Tipping Point?, it seems that the employees of Hoy Patrimonio don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Capital Spending Reduction

– Even during the low interest decade, Hoy Patrimonio has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

High cash cycle compare to competitors

Hoy Patrimonio has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the CEMEX's Patrimonio Hoy: At the Tipping Point? HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Hoy Patrimonio has relatively successful track record of launching new products.

Products dominated business model

– Even though Hoy Patrimonio has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - CEMEX's Patrimonio Hoy: At the Tipping Point? should strive to include more intangible value offerings along with its core products and services.

High operating costs

– Compare to the competitors, firm in the HBR case study CEMEX's Patrimonio Hoy: At the Tipping Point? has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Hoy Patrimonio 's lucrative customers.

Increasing silos among functional specialists

– The organizational structure of Hoy Patrimonio is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Hoy Patrimonio needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Hoy Patrimonio to focus more on services rather than just following the product oriented approach.

Slow decision making process

– As mentioned earlier in the report, Hoy Patrimonio has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Hoy Patrimonio even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.




Opportunities CEMEX's Patrimonio Hoy: At the Tipping Point? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study CEMEX's Patrimonio Hoy: At the Tipping Point? are -

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Hoy Patrimonio to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Hoy Patrimonio in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.

Low interest rates

– Even though inflation is raising its head in most developed economies, Hoy Patrimonio can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.

Developing new processes and practices

– Hoy Patrimonio can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Hoy Patrimonio can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

Building a culture of innovation

– managers at Hoy Patrimonio can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Hoy Patrimonio can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Learning at scale

– Online learning technologies has now opened space for Hoy Patrimonio to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.

Use of Bitcoin and other crypto currencies for transactions

– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hoy Patrimonio in the consumer business. Now Hoy Patrimonio can target international markets with far fewer capital restrictions requirements than the existing system.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Hoy Patrimonio can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Hoy Patrimonio can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Using analytics as competitive advantage

– Hoy Patrimonio has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study CEMEX's Patrimonio Hoy: At the Tipping Point? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hoy Patrimonio to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Loyalty marketing

– Hoy Patrimonio has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Hoy Patrimonio is facing challenges because of the dominance of functional experts in the organization. CEMEX's Patrimonio Hoy: At the Tipping Point? case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.




Threats CEMEX's Patrimonio Hoy: At the Tipping Point? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study CEMEX's Patrimonio Hoy: At the Tipping Point? are -

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Hoy Patrimonio in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Easy access to finance

– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Hoy Patrimonio can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Hoy Patrimonio in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Hoy Patrimonio.

Environmental challenges

– Hoy Patrimonio needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Hoy Patrimonio can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Shortening product life cycle

– it is one of the major threat that Hoy Patrimonio is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.

Technology acceleration in Forth Industrial Revolution

– Hoy Patrimonio has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Hoy Patrimonio needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Regulatory challenges

– Hoy Patrimonio needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Innovation & Entrepreneurship industry regulations.

Increasing wage structure of Hoy Patrimonio

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Hoy Patrimonio.

Stagnating economy with rate increase

– Hoy Patrimonio can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Hoy Patrimonio needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.

High dependence on third party suppliers

– Hoy Patrimonio high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.




Weighted SWOT Analysis of CEMEX's Patrimonio Hoy: At the Tipping Point? Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study CEMEX's Patrimonio Hoy: At the Tipping Point? needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study CEMEX's Patrimonio Hoy: At the Tipping Point? is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study CEMEX's Patrimonio Hoy: At the Tipping Point? is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of CEMEX's Patrimonio Hoy: At the Tipping Point? is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Hoy Patrimonio needs to make to build a sustainable competitive advantage.



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