Increasing Competitiveness of Nanostore Business Models for Different Socioeconomic Levels

M. F. Rangel-espinosa, J. R. Hernández-arreola, E. Pale-jiménez, D. E. Salinas-navarro, C. Mejía Argueta

Research output: Chapter in Book/Published conference outputChapter


This chapter explores how customer's attributes, shopping behavior, and preferences affect the retail choice in fiercely competitive retail environments of megacities from developing countries. We study how small, family-owned retailers (i.e., nanostores) compete against organized chains from the modern channel (i.e., convenience stores and supermarkets) at different socioeconomic levels in 9 out of 16 boroughs from Mexico City. Primary data were collected using a combination of instruments (i.e., observation, interviews, and surveys) that were applied to relevant stakeholders of the retail footprint where nanostores develop their operations. We analyze the data via statistical tools such as descriptive statistics and independent nonparametric tests to understand the significant factors of the competitive landscape in which nanostores are immersed. We supplement our research methodology by using causal loop diagrams to identify opportunities in the way suppliers, shopkeepers, competitors, and customers interact with each other and new business models for the nanostore supply chains. By breaking down our result analysis into low-, middle-, and high-income areas, we provide insightful recommendations to increase nanostores' survival, improve their operations, and grow them in Mexico City by addressing issues from the supply, store management, and customer service.
Original languageEnglish
Title of host publicationSupply Chain Management and Logistics in Emerging Markets
Subtitle of host publicationSelected Papers from the 2018 MIT SCALE Latin America Conference
EditorsHugo Tsugunobu Yoshida Yoshizaki, Christopher Mejía Argueta, Marina Guimarães Mattos
ISBN (Electronic)978-1-83909-331-9
ISBN (Print)978-1-83909-333-3
Publication statusPublished - 20 Nov 2020


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