Determinants of Competitive Advantage in Small Neighborhood Grocery Retailers vis-à-vis Supermarket Chains: An Analysis of Managerial and Commercial Strategies in Puebla, Mexico

Abstract

The accelerated expansion of convenience store chains in Mexico has significantly displaced traditional neighborhood grocery retailers (misceláneas), revealing a critical knowledge gap regarding how these microenterprises can develop sustainable competitive advantages through internal strategic management when facing large-scale competitors. This study aimed to determine the relationship between administrative and commercial strategies and the generation of competitive advantage among neighborhood grocery stores in the city of Puebla, Mexico, in order to identify key drivers of business resilience.and differentiation (r = 0.3455) showed a moderate positive influence, whereas cost leadership emerged as the least determinant factor (r = 0.0608). It is concluded that the competitiveness of traditional retail does not primarily depend on price competition, but rather on the professionalization of administrative management and value creation through a clearly defined and recognizable brand identity. These results provide an empirical basis for the design of strengthening programs targeted at commercial microenterprises, suggesting that strategic direction and differentiation constitute the central pillars for their survival in increasingly globalized markets. It is concluded that the competitiveness of traditional retail does not primarily depend on price competition, but rather on the professionalization of administrative management and value creation through a clearly defined and recognizable brand identity. These results provide an empirical basis for the design of strengthening programs targeted at commercial microenterprises, suggesting that strategic direction and differentiation constitute the central pillars for their survival in increasingly globalized markets.