Comparative Analysis of Company's Competitive Position and Challenges in Cross-Border Trading

This report provides a comparative analysis of the company's competitive position in various markets and explores the challenges it faces in cross-border trading. It also discusses the importance of cross-border trade and the benefits it brings to businesses. The report focuses on Vauxhall Motors as a case study.

Business Project

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
Comparative analysis of the company's competitive position in its various market and how
does the company's business activity result in gaining competitive advantage.....................4
Various challenges the company need to consider when trading across borders...................7
PART 2..........................................................................................................................................10
Company needs to consider to enhance their business using appropriate theoretical tools. 10
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................14

INTRODUCTION
A business is defined as any corporation or any other institution that engages in commercial,
professional, humanitarian, or industrial activity. It could be a for-profit or a non-profit
organization and that may or may not exist independently of the folks managing it. Businesses
must establish a workplace in which employees desire to work while also developing itself
through mentoring, evaluation and exchange of information. This must collaborate with its
workers, clients, vendors, society and media. To improve business reputation, these would
convey essential information both internally and internationally as well as acquire adherence to
its primary aims. International trade also raises competitiveness in home markets while opening
up new chances in emerging economies. Globalization drives businesses to become more
creative and productive in its asset utilisation. International business provides customers to a
wide range of goods and services. Market diversity is amongst the most major benefits of foreign
trade. Concentrating solely on the domestic country may present business to higher threat due to
economic crises, political issues, environmental disasters, and other risk factors. Making
business less reliant on a common market may assist business in reducing possible hazards in the
primary business. Vauxhall Motors is taken as base company. Performing trade in the other
nations can help the organisation’s credibility. Achievement in one nation might have an impact
on accomplishment in other nations raising the business's name in the market area. It could also
enhance the business’s image both at local and internationally. Vauxhall Motors is car
manufacturer organisation which is established in 1857 by Alexander Wilson in the United
Kingdom. Vauxhall offers passenger automobiles, electric cars, and light commercial vehicles
under that same Vauxhall trademark, and it previously produced vans, buses, and trucks under its
Bedford Vehicles brand. Vauxhall has been the second-largest performing vehicle brand in the
United Kingdom towards more nearly 20 years. In 1925, it was purchased by the American
carmaker General Motors which is known as GM. Bedford Vehicles was founded in 1930 as a
subdivision of Vauxhall to produce commercial vehicles. In this report, it covers the comparative
analysis of the company's competitive position in its various markets with company's business
activity result in gaining competitive advantage. Along with this, it also includes the various
challenges the company need to consider when trading across border and at last, what the
organisation needs to consider enhancing their business by using theoretical tools is explained in
this report.

PART 1
Comparative analysis of the company's competitive position in its various market and how does
the company's business activity result in gaining competitive advantage
Comparative analysis is a way of assessing the rivals and examining how their product
operates in comparison to them. Understanding what business rivals offer and do not offer is
always preferable than assuming on their own. Financial statements are essential in company
competitive analysis. Organizations could discover important trends and forecast future trends by
studying financial comparatives and identifying substantial or unexpected variations. A firm can
analyse industry outcomes and determine whole corporation success by conducting a business
comparison study among others in the sector. Political issues, economic conditions and industrial
changes all have an impact on trend shifts (El and et. al., 2018). Important events that have a
major effect on a modification in trends are frequently documented in financial statements by
organizations. The capacity of an industry to produce a certain item or services at the lowest
possible cost than its trade rivals is referred to as comparative advantage. A comparative
advantage allows a firm to provide goods and services at a cheaper price than opponents while
maintaining higher profit levels. In context to Vauxhall Motors, their revenue generated in 2019
was £3,162.8 million with an operating income of £70.7 million in the same year. Toyota, Ford,
Tesla, Honda and many more are competitors of Vauxhall Motors. Toyota has generated
¥27,214,594 million in financial year 2021 with the operating income of ¥2,197,748 million.
Total revenue generated by Ford in 2020 was $127.144 billion whereas Tesla has revenue of
$31.536 billion in the same year with an operating income of $1,994 million and Honda
generates revenue of ¥15.36 trillion with an operating income of ¥833.5 billion in year 2018. It
has a significant influence in the passenger car market, having agreements with UK police
services and it is also the UK’s biggest manufacturers of commercial vehicles. Vauxhall's first-
half 2019 market position for automobiles and light commercial vehicles grew by 0.19 %, from
7.36 % in H1 2018 to 7.55 % this year, beating a weakening market (Vauxhall, 2019). In order to
examine the competitive position in the different market with gaining of competitive advantage,
Porter’s five force model for Vauxhall Motors is mentioned below:
Porter's five forces is a model which defines and analyses the five competitive forces that
influence any sector and aids in determining the company's limitations and advantages (Pierre
and de Fine Licht, 2019). It is commonly used to establish company strategy by identifying a

company's structure. This approach could be used to any sector of the industry to better analyze
business competitiveness and increase a corporation’s long competitiveness.
Bargaining power of suppliers (low): With the exception of some major players who are
automotive manufacturers or large technological businesses, suppliers' negotiating strength in the
car sector is commonly low. The compact size of source firms the limitation of forward
incorporation capacity, solid financial and buying power of car brands and other considerations
are among the major factors limiting suppliers' bargaining power. Vauxhall Motors do not rely
on a specific supplier of raw materials as it limits its capacity to deliver excellent goods to
market quickly. Because the firm is a huge and worldwide corporation with access to raw
materials from suppliers all over the world including all the resources it wants to acquire parts
and raw materials at its disposal, its suppliers' bargaining power is severely limited. All in all,
most variables benefit the vehicle company over the suppliers, thus automakers Vauxhall
Motors have more bargaining power than its suppliers (Hart, 2019). Furthermore, in the case of
major vehicle companies, it is likely that they may participate in certain reverse integrations such
as generating many of the most essential parts and components in-house. Vauxhall Motors is
producing battery cells for electric vehicles in-house and as the business prepares for an
environmentally friendly future of transportation, this will minimize its dependency on other
major suppliers such as Tesla while also proving advantageous for the corporation. Tesla, the
industry's top provider of battery cells for electric vehicles, has more bargaining power than the
minor suppliers. In the automotive industry, suppliers' total bargaining power is low.
Bargaining power of buyers (high): Bargaining power of buyer in the car sector is fairly
high, with the rising involvement of customers and shifting demographic patterns playing a
major impact. The customer is now so important to the success of major corporations in any
sector, particularly cars (Cucari, 2019). Vauxhall Motors are devoting their operations
throughout the world to provide their consumers with a safer, more efficient and environmentally
friendly driving experience. Various factors have contributed to a rise in customer bargaining
power such as consumer-friendly government policies, increasing competition, greater
availability of replacements and greater access of information. Even though changing costs are
significant in the car business, firms cannot bear to lose consumers due to severe competition.
Each transaction, either for a family automobile or a premium, luxury, or sports car brand, is
considerable in size. Buyers' bargaining power is relatively high altogether according to several

variables that operate to limit consumers' bargaining power, such as brand equity, technical
innovation, marketing, product quality and high switching costs (Eidson and et. al., 2017). Even
so, establishing loyalty for automotive companies is today more challenging than it was a
generation ago.
Threat of new entrant (low): The threat of new entrants is low for Vauxhall Motors. As
existing companies build partnerships to increase their power, the extremely high entry obstacles
have proven new entrants difficult. Aside from the significant cash necessary to establish the car
business, legal barriers also prevent new entrants from entering. There are multiple regulations
that function as hurdles and aside from the required permissions and licensing, there are some
other legal requirements that make entrance challenging (Kumar and et. al., 2020). The inherent
threats in the car sector are considerably higher and Vauxhall Motors would not have to worry
about new entrants gaining market share from it. So if a new brand enters the market, it would
have to establish confidence and market equity that will need all these financial capital and
effort. Furthermore, Vauxhall Motors have extremely high trademark identification that is
extremely difficult to develop for a new brand. The high amount of competition also acts as a
barrier for new entrants. With all of the mentioned criteria the total amount of threat posed by
new entrants for the selected firm becomes low.
Threat of substitute (medium): In regard to rival vehicle manufacturers, there are many
other choices, such as public transit. Taxi services such as Uber and Lyft are other alternatives to
owning a car. Furthermore, numerous variables, such as brand identity, consumer loyalty and the
rights that occur along possessing a car minimize the danger posed by alternative products.
Vauxhall Motors offers a diverse product line that serves to consumers' varying pricing points
and transport demands (Remane and et. al., 2017). In collaboration with technical progress, the
firm's broad product offering has contributed in increasing need for its goods. Increased need and
consumer loyalty also has resulted in a decrease in the threat of replacements that stays
medium altogether.
Rivalry in the industry (high): The rate of competitive rivalry in the industry is high and
aside from the involvement of a big set of players, the transformation of the public transit
structure and enhanced emphasis on technical advancement have both played a significant
function in increasing rivalry among automobile manufacturers. The increasing competitive
competition has resulted in higher operational spending for Vauxhall Motors and also a greater

emphasis on technological advancement, promotion and client service (Gorji, Carney and
Prakash, 2020). In the global marketplace, Vauxhall Motors has more than a dozen competitors.
Competitors such as Ford and Toyota as well as FCA and VW are significant and important
companies with a sizable market share.
Various challenges the company need to consider when trading across borders
Cross-border trade is a wider term that refers to the selling and purchasing of products and
services with adjacent nations. Because it contains the nearest oversees, it is amongst the most
efficient trading platforms. This is beneficial and efficient for various regions of the world.
Several nations rely on this as their major mechanism for importing products and services.
Nations that lag far behind agricultural export of primary food materials rely heavily on cross-
border trading. Cross trade has been a large potential made accessible to companies in order for
them to continue with their organization. Cross-border options are an excellent opportunity for
both suppliers and retail customers. Organizations profit greatly from cross-border commercial
prospects (Brun, 2019). This is advantageous since it enables for the selling of products all over
the world. Cross trading frequently need the establishment of a comprehensive and well-defined
set of regulations that regulate the company's corporate structure. It implies that it should be
transparent about its functioning. Many cross trading firms strengthen their governance structure,
which directs the business's aims and objectives. Emerging economies might provide fresh
opportunities for a new line of service or product. It may also provide you with the chance to
specialise in a particular field to better serve that market. Exposure to the reality of the world
beyond the domestic country may even inspire innovations, improvements, and efficiency in
business goods and services. Firms have access to more prospective investors that equals more
cash. Their stock could also develop steam by becoming traded in even more than one location
throughout the globe (Aguinaldo and et. al., 2019). Because of this, the firm has a higher
probability of raising financing as it has higher market exposure. Improved brand awareness
leads to better decision, which leads to stronger performance. If brand awareness is in line with
changing economic buying demands and patterns, it may get the best outcomes from purchasers.
It can also help to create a good picture of the company in the minds of the target audience.
However there are some difficulties and issues which are mentioned below:

There is a scarcity of knowledge about the local market: As often as not, sellers
essentially dismiss the idea that adequate market investigation is important before starting a
business It is necessary to be well-versed in the overseas business. Vendors are prone to
problems if they do not have a thorough understanding of all components of the overseas market.
If it relates to buying trends, they vary greatly (Karlusch, Sachsenhofer and Reinsberger, 2018).
As a result, it is important to research the various payment patterns and techniques. Most
essential, when it relates to purchasing a pattern, festivals and formal events have a strong
impact. In this situation, vendors may face several criticism as a result of alignment with the
buyer's needs. In this circumstance, extensive market research, complete data, and a variety of
surveys might be useful to the company which will assist company fully understand the
international consumers while also distinguishing their brand from competitors' offerings.
Shipping and logistics: It is one of the most significant factors to consider when expanding
the business into foreign seas. It is a significant key distinguishing in terms of the brand's
viability and trustworthiness. The most important thing is to complete the requests that have been
placed. As a result, it is necessary to be attentive during the packing process and, finally, to
coordinate the package with the most appropriate vehicle (Link and Morrison, 2019). The
shipping partner has to provide big shipment as well as significantly reduced shipping prices.
Whenever it relates to effective practice, it is a difficult element to understand. Order fulfilment
makes extremely challenging with a sole courier company. Bargaining could be tough due to the
high cost of foreign shipping operations. It could also have an impact on product prices. The
enterprise may solve this challenge by working with shipping alternatives that can provide
business with convenient shipment across different couriers at relatively low costs. It not only
provides businesses a wider access but this also permits company to ship at affordable and
effective prices starting at just 110 every 50 grams.
Overhead and other expenses: Whenever it relates to the worldwide market,
organisation must spend in various additional items that you might normally dismiss. The
worldwide market is significantly larger, and their main distinguishing differs greatly from the
domestic market. The very first approach is to redesign the international price structures. This
involves the addition of new languages as well as a currency conversion (Beatson and et. al.,
2020). This ensures that buyers understand the goods they are purchasing and receive the correct
pricing. Then there are the taxation and customs duties that are charged on every product. When

the overhead cost rises, so do the charges. As a result, the quantity involved in capabilities for
handling the international sector grows at a quick rate. Shipping tariffs are expensive to pay
(Huzzard, Benner and Kärreman, 2017). In addition, company will require spending in order to
finish all of the documentation and procedures. This will make international trading easier and
more efficient.
Local marketing and promotion: Understanding the needs and desires of the potential
customers is vital before connecting them in business products and services. Whenever it
concerns to chasing customers to purchase from their business rather than their rival's business,
sellers constantly encounter certain challenges. This involves a comprehensive examination of
both the clients and the competition in the market. Culture, customs, holidays, beliefs, and other
factors all have an impact on the issue. As a result, interaction is essential. Before contacting
potential consumers with any data or marketing for the product, firm must first interact with
customers. An advertisement that works in one location may not work the other (Gray and
Ulbrich, 2017). Since the influencer generally knows so much about the location and its
inhabitants, it will be a simple task for them to assist in selecting the specific locations. They will
be quite beneficial in distributing the items to thousands of prospective clients. Therefore, you
must constantly remember to be innovative in whatever do such that the outcomes are as realistic
as achievable.
Growing regulations: In addition to being particularly vulnerable to modification
regulating regulation would be on the rise as a result of a greater awareness of and interest about
concerns including safety, product quality, and the environment. As a response, in order for their
items to be lawfully traded, producers must guarantee that they meet an ever-increasing list of
standards. Therefore, firms must be prepared to react to a plethora of new regulatory
requirements.
Absence of harmonised standards: There is a global lack of synchronised regulations,
which means that firms seeking to trade. In instance, the EU, United States, Middle East or the
CU would examine distinct articles of law for every location, each governed under a different
structure (Easterby-Smith and et. al., 2018). As a consequence, the procedure of obtaining the
necessary certifications varies greatly from industry to industry.

High compliance costs: Due to ever-increasing government regulation and the necessity to
meet several distinct criteria for specific markets the cost involved with compliance can be
considerable, raising the effective cost of manufacturing.
Long time to market: The necessity to hop through that many legislative obstacles, as
mentioned above, would significantly lengthen operational efficiency. Further testing and the
even more time-consuming procedure of getting product conformity accreditation might cause
the firm’s market appearance to be delayed, affecting its revenue (Håkansson and Snehota,
2017).
Credit to consumers: The difficulty that several cross-border businesses encounter is their
dependency on traditional credit authorization procedures. Many businesses in developed
economies presumably are concerned to reduce their risk level by depending on non-traditional
transaction validation mechanisms. However, this may make it extremely challenging for
customers and businesses to engage with one another.
PART 2
Company needs to consider to enhance their business using appropriate theoretical tools
There are several theoretical tools and techniques accessible to business organisations that
may be utilised to improve their organization and effectiveness in the industry. In context to the
selected firm, the tools that can be used by the company to enhance their business are mentioned
below:
Porter's generic model
The Porter's generic strategy is a significant strategic technique which is used amongst
businesses to obtain a competitive edge in the industry. Michael Porter gave the tool in 1985. It
primarily consists of four strategies that assist a firm in gaining a strategic edge in the industry.
The following strategies are mentioned in relation to the chosen company:
Cost leadership approach: Here under the strategy, the firm focuses on lowering the
expenditure of its commodities in attempt to capture a large customer base (Sherman and
Nekvapil, 2018). Such approach primarily focuses on lowering costs in order to obtain a
competitive edge in the industry.

Differentiation approach: The strategy is the differentiation strategy, in which the firm's
major emphasis is to supply distinctive and diverse products in effort to obtain a competitive
edge in the industry allowing businesses to stand out among its opponents.
Differentiation focus strategy: A distinct type of strategy is the differentiation focus
strategy, which allows businesses to give innovative and distinguished goods and services to
specialised markets in order to grow their organization. This enables enterprises to concentrate
on a certain core industry.
Cost focus strategy: The cost focus strategy is an outgrowth of the cost leadership strategy.
Within this approach, the organisation’s fundamental goal is to emphasize on the specific sector
or niche market. The firm provides low-cost products and services to the specialized audience
Based on the analysis above, Vauxhall Motors may implement a differentiation focus
approach to improve their operation. It will enable the business to emphasis on niche markets
and captivate consumers by giving them innovative and distinct offerings. This would provide
businesses with a competitive edge.
Ansoff Matrix
Ansoff matrix is a approach that helps organisations to develop and manage successful
strategies that result to expansion and productivity (Hartono, 2018). The following strategies are
explored in relation to the chosen organisation are mentioned below:
Market penetration: The very first approach is market penetration, which permits
businesses to concentrate on delivering current products into established markets, allowing them
to improve their effectiveness and profits. It may be accomplished by boosting awareness of
existing items.
Product development: A further strategy is product development, in which the major
objective of the business entity is to introduce innovative merchandise into the established
market in attempt to gain sales. It could be accomplished by proper analysis, which evaluates the
demands of their current consumers and afterwards introduces new products to meet those
requirements.
Market development: The market development strategy encourages businesses to
emphasis on approaching new markets utilizing its existing well-established goods. And use this
approach permits businesses to grow its size of the market and improve their organization by
penetrating foreign markets.

Diversification: The final strategy is diversification. It is amongst the most difficult
strategies that a corporate can use because it includes approaching a new market with a latest
commodity. While introducing a new commodity into a totally new segment could be dangerous,
suitable market evaluation can contribute to corporate achieving incentives (Broome, Bowersox
and Relf, 2018).
Based on the research above, Vauxhall Motors may adopt a product development plan to
improve their organization and achieve a competitive edge in the industry. This approach will
assist the firm in introducing new products into established markets. As firm has a powerful
brand reputation across its consumers, bringing new products into the current industry will be
smoother for them, allowing them to improve its operations and capture a big amount of clients
thereby growing its potential audience.
CONCLUSION
From the above discussion, it can be concluded that it is important for corporations to obtain
a competitive edge in the industry in effort to remain and develop in an increasingly challenging
marketplace. The business that is a legal entity is continually working to improve their
effectiveness by providing excellent value to a consumer and increasing their earnings. . This has
also been determined that in aims to boost its market potential and enhance their client base,
businesses are constantly looking to the foreign market. This analysis supports in the evaluation
and comprehension of numerous marketing concepts. With a thorough overview of the firm and
its rivals, including its competitive position in the industry and also the firm's products and
services which is initially mentioned in the report. This report involves two section in which the
comparative analysis of the company's competitive position in the market. Comparative analysis
enables businesses recognise the rivalry present in the industry and also how can a organization
can successfully establish its own brand value. The porter's five force model is used to evaluate
the firm's competitive analysis. A thorough explanation of every force of the evaluation help in
determining that how firm could preserve its competitiveness in the global market while taking
into account all elements. These can assistance in recognising external opportunities and risks in
order to make meaningful business choices and strategies. This would not need any specialist or
technical knowledge. It is likewise reasonably priced. The corporation might simply select
persons from its employment pool. For keep up with changes in a challenging market, it's also

necessary for the corporation to raise its market size, which may be accomplished by developing
its operations into the global marketplace. Moreover, there are significant issues that will also be
experienced by the firm while at it. In this report, a comprehensive examination of the different
issues that must be addressed by the selected organization when trading over the border is also
emphasised. Furthermore, the second section emphasises the appropriate theoretical tools that
could be implemented by the chosen firm to significantly improve its organization Thus, in effort
to improve the operations of the selected firm, the Porter's generic model and Ansoff matrix are
discussed. The strategic tool would assist a firm in determining the appropriate plan to adopt in
attempt to achieve a competitive edge in the marketplace and improve entire profitability and
effectiveness.

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Online
(VAUXHALL MARKET SHARE CONTINUES TO GROW, 2019) [Online] Available through;
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