Competitive Analysis and Trading Across Borders

Business project

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY.............................................................................................................................................3
TASK 1.......................................................................................................................................................3
Discuss competitive analysis of the company through competitive position in the market and explain
how company achieve competitive advantage.........................................................................................3
Explain various challenges a company needs to consider while trading across borders..........................6
TASK 2.......................................................................................................................................................8
With the help of appropriate theoretical tool discuss the factors that company needs to consider for
enhancing business..................................................................................................................................8
CONCLUSION..........................................................................................................................................9
REFERENCES........................................................................................................................................11

INTRODUCTION
This report helps in understanding the concept of competitive analysis and various
challenges faced by an organization which play an essential role in the success of an
organization. An organization is an enterprise where a group of people are working with each in
a same direction for achieving a common goal or objective of an organization. For success of any
organization it’s very important that the effectively analyzed the all external factors. One of these
external factor is competitors. It refers to a person or a company which offer similar type of
products or substitutes of their product and try to make other company customers of its own (Du,
2020).These factors play an essential role in any business organization as the effect the business
most. If an organization wants to achieve higher sales and profitability in market for a long
period of time than it’s important for company to effectively analysis the competitors in market.
Other than this expanding business in other countries or sales of goods and services by seller in
other countries helps an organization in achieving long term success and create a worldwide
image. This will increase market share and products sales of company. But for effectively selling
its goods and services a company needs to keep in consideration various challenges that will be
faced by company at the time of trading across borders. Is a company wants to achieve higher
growth and wants to expand its business they are require to adopt effective tools and strategies
which helps them in achieving competitive advantage in market. For this report Toyota Motor
Company is taking into consideration. It is an Indian multinational automotive manufacturing
company which is founded by J. R. D. Tata in 1945 and its headquarters is in Mumbai,
Maharashtra, India. It has a wide range of products which are passenger’s cars, trucks, vans,
coaches, buses, sports cars, construction equipment’s, military vehicles and so on. More than
78,906 numbers of employees are successfully working with this organization. While formerly it
was known as Tata Engineering and Locomotive company (TELCO). The company
manufacturing their first vehicle in 1969 in a collaboration with Daimler-Benz AG. Now it’s
worldwide provide its products. This report include Porter five forces model for analyzing
competitors and various challenges that an organization need to keep in consideration at the time
of doing trading across borders. Other than this various important theoretical tools are discuss
with the help of Ansoff matrix which assist in expanding business (Wegelin, 2018).
MAIN BODY
TASK 1
Discuss competitive analysis of the company through competitive position in the market and
explain how company achieve competitive advantage.
Competitive analysis refers to a process which helps an organization in categories and
evaluating its competitor’s strength and weakness in comparison of selected company (Marom
and et. al. 2020). Competitors paly an essential role in influencing the growth and success of an
organization. If a company wants to achieve higher and long term success in market then they
require effectively analyzing their market competitors. Achieving competitive advantage in
market enhance sales and profitability of an organization. This will helps organization in
attracting more and more competitors towards company. But for this company needs to first

analysis its competitors and level of competition in market (Pham and Stack, 2018). In context of
selected company, they operates its business worldwide and also the competition of automotive
industries is enhance day by day. This will create barriers for company it the path of its success.
Selected company effectively analysis competitors with the help of porter five forces model. In
context of selected firm, porter five forces model and its various factors are discuss below:
Porter five forces model- This model is published in the book “Competitive Strategy:
Techniques for analyze industry and competitors” of Michael E. Porter’s. It refers to a model
which helps an organisation in identifying and analyzing the five competitive forces that shape
every industry and determine the strength and weakness of industry. This model is used for
identifying the structure of an industry which helps in determining corporate strategy. This
model is useful in any segment of economy for better understanding the level of competition
within the industry and provide ling term profitability to company. In context of selected firm
they frequently use this model for measuring competition intensity, attractiveness and
profitability. Porter five forces model includes five effective forces which are mention below in
context of company (Wegelin, 2018).
 Competition in the industry (High) - The first force of porter five model includes the
numbers of competitors and their ability to undercut a company. Increase in the numbers
of competitors which offer similar type of products as company will reduce the power of
company. The buys and suppliers on a company will also transfer to competitors if they
offer better deal and lower price products. But when an organisation face low level of
competition they have a power to charge higher price for their product and achieve higher
sales and profitability. In context of selected firm, there is a high force of competition in
industry. There is an intense competition in India automobile sector for both in passenger
and commercial vehicle segment. Major competitors of selected firm is Maruti,
Mahindra, Eicher, Honda, Bharat Benz etc. This will create a problem for company by
reducing its sales of product which impact on its profitability (Barney and Mackey,
2018).
 Potential of new entrants into the industry (Medium) - A company power and success
is also influenced because of the force of new entrants into market. A competitor of a
company require a less amount of time and money for entering into the market of
company. Higher level of entrants of new company will influence the business most.
While an industry with strong barriers on entrance of new company helps an organisation
in achieving higher growth and success. In context of Tata Motors Company, it is
analysis that there is medium force of potential of new entrants into the industry. This is
because selected firm operates its business worldwide and many international companies
are already entered in market and some companies are planning for entering into market.
This will increase the level of competition for company and reduce its market share
(Bruijl, 2018).
 Power of supplier (Low) - This factor of porter five forces model address that at what
rate a supplier of an organisation will drive up the cost of raw material it provided to
company. The effect of supplier is based on the numbers of suppliers providing that type
of input and the amount of cost occur at the time of switch to another supplier. Less