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Oxxo.

The chain was founded in the city of Monterrey in 1977, in accordance with a
company plan to promote its Cervecería Cuauhtémoc brands, so at first its stores
sold only beer, snacks and cigars. The name OXXO comes from the % symbol
which was how it was advertised and from there, thanks to the people, the name
OXXO was born.
La Cadena Comercial, S.A. de C.V., better known as OXXO, is a Mexican
convenience store chain owned by FEMSA (Fomento Económico Mexicano), a
subsidiary of FEMSA Comercio.

5 Porter forces
COMPETITIVE PRESSURE FROM RIVAL VENDORS
Rivalry defines the profitability of a sector: the fewer competitors there are in a
sector, the more profitable it will normally be, and vice versa. Competition from
stores such as 7-Eleven, Super Extra, Super City, as well as numerous chains and
other small-format regional stores, such as casual stores.
It may cause pressure for the Oxxo company, but it always remains in competition,
as there are many branches.
COMPETITIVE PRESSURE DUE TO THE THREAT OF NEW ENTRANTS
The competitive pressure for new entrants is very strong in this company, as
companies that sell products such as food, from a commercial store to a corner
store.
For this, Oxxo has advantages such as its air-conditioned area, its customer
service, its payment facilities and other services such as card payments, or just
being able to transfer money, since it has different services. In addition to its
different branches and its fast service.
COMPETITIVE PRESSURE FROM SUBSTITUTE PRODUCTS
The competitive pressure with substitute products in the Oxxo would be:
-Shopper's propensity to go to the corner store.
-Appearance of new corner stores
-Perceived level of product or service differentiation.
-Availability of nearby substitutes (stores).
NEGOTIATING POWER OF SUPPLIERS
The ability to negotiate with suppliers is generally considered high, for example in
Oxxo chains, which can choose from a large number of suppliers, most of which
are already known.
Some associated factors are:

-Number of suppliers in the industry.


-Price decision power on the part of the supplier.
-Level of supplier organization
Threat of new entrant competitors

This point refers to the barriers to entry of new products/competitors. The easier it
is to get in, the greater the threat. In other words, if you are setting up a small
business, it will be very easy for new competitors to enter the market.
BARGAINING POWER OF CUSTOMERS
The bargaining power of the clients is null since the rates of the products are rigid
and established by the company, but there are promotions that they make to be
able to take out some of their products.

The Oxxo company, well known in Mexico, is a company that is very competitive
with its competitors since it always offers promotions on its products and is located
in strategic places.

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