Challenges in Trading Across Borders

Business Project

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
PART 1............................................................................................................................................4
Assess the comparative analysis of competitive position in different market. Determine how
organisation can gain competitive advantage in business activity.........................................4
Explain the challenges organisation should consider when trading across borders...............7
PART 2..........................................................................................................................................10
Apply the relevant theoretical tool and discuss what company need to consider in order to
enhance their organisation....................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is defines an entity where they have to purchase and sell various goods and
services in order to make profit. In other words, it can be said that they have to make various
efforts and conduct activities so that they can sell their goods and services in market. The main
aim of this report is to understand the different factors that they need to gain competitive
advantage. When any organisation wants to expand their business they have to identify various
factors which will help them to remain in market for long time. As there are various competitors
in market so first important is that they have to analyse what are the strategies and product is
been developed by their competitor. With the help of this they can build their own strategies in
order to accomplish business the objectives in an effective and efficient manner. In this report,
Unilever is taken as base consideration.
Unilever is a multinational company deals in consumer goods as they include both food
as well as non food items. This includes beauty products, personal products, toothpaste, utensils,
juice, cleaning tools and many other products. They deal in various diversified product but they
only produce the best quality products. The main production of Unilever is soap because they
produce different types of soap in many countries. The headquarter of Unilever is located in
London and England. As per the recent report, currently 155000 employees are working in the
year 2021 and they also develop various motivation levels to motivate their employees to put
efforts to produce best quality products in market. They operate their business in different
location of world. In report, include the comparative analysis of competitive position in different
market which helps them to gain competitive position in market. There are various challenges
which organisation has to consider while trading across borders. To expand their business they
have to adopt the tool which will help them to understand the external factors. For this the
selected organisation can has chosen PESTLE analysis which will help them top understand
different factors. By using this framework they can identify many factors which include political,
social, and technological and many other external factors that should be consider when
enhancing their business. To gain competitive advantage they expand their business in different
location or where there is no competitor available in that consumer market. They can also
innovate and introduce new product by identifying the products of competitor so that they can
remain competitive in market.

MAIN BODY
PART 1
Assess the comparative analysis of competitive position in different market. Determine how
organisation can gain competitive advantage in business activity
Porter five forces is a framework which analyse and monitor the competitive forces
which include many factors which help organisation to identify what are their weakness and
strength and how to overcome that particular position in market. In other words, it can be said
that, this model is use to determine what are the strategy they can develop in order to remain
competitive in market (Hales and Mclarney, 2017). There are many competitors in market so
they have to develop strategies which should be creative and innovative which help them to
attain the set target on time. In context to Unilever, they are the most competitive in consumer
market as they deal in diversified product in market. It helps in selected organisation to
understand the external factors that impact on business environment. In five forces, Unilever the
most important external factor is competitive rivalry with bargaining power of buyers. This is to
assess the success for long time period and with the help of this they can determine where the
issue is been occurred in selected organisation. The five forces which is affecting Unilever which
is mentioned below: Competitive rivalry (High): Competition is one of important force in business
environment of Unilever, this analyse the external components that directly impact their
activities. There are various reasons that competitive rivalry is high in relation to
Unilever which is based on various factors such as there is large number of competitor
in market, high aggressiveness and the main factor is low switching cost (Johannsdottir
and McInerney, 2018). There are many competitors in consumer market which are
P&G, Nestle, Johnson & Johnson, Kimberly-Clark and many others. The main
competition is that there competitor reduces the price of goods and services then
customers shift from their company to another company. Bargaining power of buyer(low): The main reason of bargaining power of buyer is low
because the industry and functions of Unilever is mainly depend on the customers as
how they respond to particular product. There are various factors that Unilever has
moderate level as the main reason is that customer can switch to other brand whereas on