Comparative Analysis and Challenges in Trading Across Borders

Business Project

Table of Contents
Introduction......................................................................................................................................1
Part 1................................................................................................................................................2
Explain comparative analysis of the company’s competitive position also its business activity
helps in gaining competitive advantage.................................................................................2
Discuss various challenges needs to be considered while trading across the borders............5
Part 2................................................................................................................................................8
Applying suitable theoretical tools, assess what needs to be considered to enhance their
business by the company........................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Introduction
A business in an organisation which is engaged in the buying and selling of goods and
services in order to satisfy the customers needs and wants and also to maximise their profit. It is
a legal entity which is continuously engaged in the procurement and distribution of products and
services by an individual, continuously working towards offering quality services to their
targeted customers, with increasing competition in the market it becomes essential for the
business organisation to enhance their performance and gain competitive advantage in the
market. most of the companies are moving towards international market in order to increase their
market size and also customers base, international business is mainly define as the process of
carrying out all the business activity or buying and selling of goods and services at the
international level, it help business with vast number of opportunities present in the international
market. for business to continue to grow and survive in the market it is essential to analyse their
market and accordingly implement effective strategies. For this report IKEA Company is taken
as the base company. IKEA is one of the well established Swedish founded, Dutch international
private ready to assemble Furniture Company. The company was founded in 1943 by Ingvar
Kamprad offering services like ready to assemble furniture, food products, and home appliances
and so on. The company is considered to the world’s biggest furniture company since 2018
because of its excellent interior design work which is mainly related with the eco- friendly. The
company has strong financial position in the market with 41.3 billion revenues and with net
income of 1,731 million. Company ensures that their potential customers needs are fulfilled
effectively. under this report the detailed explanation of the chosen company and its comparative
study of its competitive position in the market along with analysis of how company gain
competitive advantage in the market which leads to enhancing their overall performance. In
addition to this various challenges needs to be considered while trading across border is also
highlighted in this report. Analysis of the various challenges helps business to take required
actions to deal with the challenges and smoothly carry out their activities. Further more suitable
theoretical tools are also highlighted in this report which helps business organisation to enhance
their performance in the marketplace effectively.
1

Part 1
Explain comparative analysis of the company’s competitive position also its business activity
helps in gaining competitive advantage
The term comparative analysis is defined as the process of comparing two or more firms in order
to compare their product and services and their position in the marketplace, the comparative
analysis helps business organisation to analyse their most potential competitors and their
activities so that company can formulate its policies and strategies accordingly which leads them
towards gaining competitive advantage in the marketplace. Comparative analysis is the process
of analysing the competitors and their product and services in comparison to their own product
and services (Aubry and Lavoie-Tremblay, 2018). Mainly the financial position of the company
directly influence the functioning of the business and its performance in the marketplace, in
order to analyse the financial position of the company important trends, future forecast can be
taken into consideration effectively. In context to IKEA is one of the well established ready to
assemble furniture company offering advance and essential services to their customers, company
was founded by Ingvar Kamprad in 1943, company is a private company with 41.3 billion
revenue in 2019 with net income of around 1.19 billion euros in 2020.
The company has strong brand image in the market with strong competitiveness, with
strong financial position in the market place in the marketplace, the main competitors of the
company are Wal-Mart, Amazon, Wayfair and son on. The total revenue of the Wal-Mart is
514.4 billion in 2019 employing more than around 2.2 million employees globally whereas the
Amazon has total revenue of around 280,522 in 2019 and Wayfair having total revenue of 9.1
billion in 2019. The strong competitor available in the market with their revenue the selected
company is facing strong competition in the market place. IKEA has a essential and strong
position in the furniture market through selling ready to assemble furniture, the major country
the company has created a itself as the strong brand which sells it products specially the furniture
products at relatively lower prices which helps company to attract large number of customers. In
order to grow and develop itself in the competitive environment it becomes very essential for the
company to analyse it competitive analysis (Chatzoglou and Chatzoudes, 2018). In order to
analyse the competitive analysis of the IKEA the porter’s five force model is taken into
consideration as discussed below:
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