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

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