Abstract

The case study “Will OXXO be Able to Replicate Its Latin American Convenience Store Success in the US?” contemplates the possibility of OXXO – Latin America’s largest c-store chain and part of Mexican multinational company, Fomento Económico Mexicano, S.A.B. de C.V (FEMSA) – leveraging its core competencies in retail to achieve success in a completely new and challenging market – the US. The case starts out by documenting the evolution of OXXO from its humble beginnings in the late 1970s in Mexico, into a dominant force through effective localization and strategic store locations. OXXO also grew through continuous diversification – both geographically and in business operations. Another key driver of OXXO’s success was its strategy to leverage its stores to provide a range of financial services to the unbanked population in Mexico, thereby playing a crucial role in bringing about financial inclusion. The case provides details of how OXXO even leveraged technology in that endeavor and eventually became a vital player in Mexico’s fintech landscape. OXXO had strong global ambitions. Having a dominant position in Latin America and a foothold in Europe, OXXO had set its eyes on conquering the highly competitive US retail market. Can OXXO establish a strong presence in the US retail industry, or will it face challenges in replicating its success outside Latin America?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Identify the core competencies of a successful retail business.
• Analyze the growth strategies of a retail company.
• Examine the impact of integrating financial services into a retail business model on customer engagement and revenue.
• Understand how retail businesses can leverage technology to enhance customer experiences.
• Develop international market entry strategies for a strong regional retail player.

Keywords

Business Diversification, Geographic Expansion, Market Entry Strategy, Financial Inclusion, Retail and Financial Services Integration, Digital Transformation, Fintech Partnerships, Customer Engagement Strategies, Competitive Advantages, Strategic Locations, Ansoff Matrix, Resource-Based View (RBV), VRIN Framework, Shared Value (CSV) Framework, CAGE Framework, Retail Innovation, and Localization,OXXO; Fintech; C-store; Retail Strategy; Developing Country; Business Environment; Brand Management; LatAM; Value Chain; Consumer Behavior