Competitive Strategy of IBC Automobile Company

This research paper examines the competitive strategies employed by IBC Automobile Company to improve its services around different marketplaces. The three primary competitive plan discuss in this research paperwork include the PETEL, SWOT, along with Porter’s Five Analysis.

Competitive Strategy of IBC Automobile Company 1
COMPETITIVE STRATEGY OF IBC AUTOMOBILE COMPANY
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Competitive Strategy of IBC Automobile Company 2
Introduction
Isuzu Bedford Corporation (IBC) is a known automobile company dealing with
manufacturing of cars in the UK. As recorded by Hansen (2016, p. 559), the competitive
problems posed to the operations of IBC automobile industry by other companies dealing with
similar operations have adversely affected its operations. Different competitive strategies
developed by stakeholders have enabled IBC to attain an essential share in the market of its
products in comparison to its chief competitors in the same operation (Parnes 2011, p. 58).
Therefore, the principal target of this research paperwork is to examine three competitive
strategies that IBC employs to improve its services around different marketplaces. The three
primary competitive plan discuss in this research paperwork include the PETEL, SWOT, along
with Porter’s Five Analysis
PESTEL analysis
PESTEL analysis in every competitive business setting continues to be the type of
analysis that has received the critical application by various industries. The application of this
analysis has helped most organizations to be capable of keeping track of their market shares
along with the environment that they operate. The company uses this analysis to address issues
that relate to its Political, Economic, Social, Technological, Ecological, together with legal
factors that affect its operations (Onoren et al., 2017, p. 519). Therefore the IBC industry
concentrates on addressing the issue marked in PESTEL to sustain its global development in
business operations. Some of the factors that come with the political aspect of IBC within
PESTEL framework comprise of different issues that consist of the policy of taxation, the
stability of government, regulations for foreign trade, along with the economics of social welfare
(Tiwari et al., 2011, p. 32). Presently, IBC faces increased instances of rising in rates and fees of
taxes imposed to their operations by the UK government.
In economic aspect, the company faces cases of high costs of taxations that comprises of
the high duties of customs. Examples of high taxes are imposed on the activities of importing
essential raw materials to be applicable by the company in the production of different vehicles
such as Nissan Primastas. Kuhar (2017, p. 25) indicated that increase in the rate of tax had
enabled IBC to face cases of increment in charges of taxes in the production cost resulting to
limitations in the scales of sales of the products produced by the company. The present scenario

Competitive Strategy of IBC Automobile Company 3
of political development in the UK poses the considerable threat to operations of the IBC
automobile industry. In social aspect, IBC is affected by different factors that consist of cultural
along with demographic issues. Some of this issues that affect operations of IBC consist of safety
awareness, distribution of age among car users, population, and attributes of career. All these
social factors help the company to concentrate on ideas that help it to adapt to its external social
environment that make it survive in the competitive marketplaces (Colovic and Mayrhofer 2011,
p. 1487). The technological aspect of the analysis on the company shows that IBC needs to adapt
to changes in technology so that it can achieve huge returns. Improvement of technology as
enabled IBC to produce quality cars for less money that helps it in reducing costs of operations.
The aspect of ecological factors has made IBC concentrate on producing vehicles that are
effective in operating in different weathers. The production of different vehicles that can be used
in almost every country has made the company have huge customer base around the global
society (Joseph 2016, p. 43). The aspect of legal issues on IBC includes health along with safety,
equal chances, and standards of advertising, rights of targeted clients, and regulations, safety and
labeling of products. Through these legal issues, IBC can understand what is and what is not
legal for its operations to be successful.
Porter’s Five Forces
The framework of Porter’s Five Forces remains to be an essential effect used to support
operations of industries. The analysis helps most businesses to concentrate on improving their
operations to survive in competitive marketplaces. The management of IBC has the abilities of
determining how operations of the industry remain high to survive in the highly competitive
marketplaces. As stated by Onoren et al., (2017, p. 516), the Porter’s Five Forces strategies
applied in the strategic management analysis of IBC comprise of different issues. These issues
include bargaining powers of buyers, the rivalry of competition, the force of bargaining of the
suppliers of the sector, threat imposed by new entry of products, along with the threat of
substitution around the marketplaces. Applying these Porter’s Five Forces in examining how
IBC organized their strategy to remain competitive, it is clear that the company seems to
comprise of better powers for bargaining over the esteemed buyers of its goods along with its
suppliers of different raw materials. The existence cases of improved operations of IBC remain
to be attributable by the essential portion of its power of monopoly of the industry of dealing

Competitive Strategy of IBC Automobile Company 4
with the production of automobile products around the UK marketplaces (Zhikang 2017, p. 326).
However, despite IBC surviving the stiff competition posed to it by its chief rivals in the market,
IBC faces the threats that occurred from the contest of improved products and users of
technology in production. The dangers that the company faced adversely affects its share in the
marketplace as well as its market control in automotive organizations. Therefore, by the use of
Porter’s Five Analysis concepts, IBC can develop strategies that they can use to cope with
competition in the marketplace.
SWOT analysis
SWOT analysis in every competitive marketplace setting remains to be the type of
analysis that has attained significant application by various organizations. The application of this
analysis helps most organizations to maintain track of their market shares along with the
environment that they work. SWOT analysis of IBC focuses on the company’s strength,
weakness, opportunity it as on the market, as well as the presence of threats that affects its
operations. As reported by Onoren et al., (2017, p. 521), the analysis of SWOT is attained within
activities of IBC by considering all factors that affect operations of the industry in every
competitive marketplace. Some of the strengths that make IBC to remain competitive in its
operations around the market include the idea that it is a known largest industry in the UK. The
diversity of the company to deal with manufacturing products like sports vehicles, trucks, public
transports, and volume cars among others make the company to attain huge customer base
(Tiwari et al., 2011, p. 28). The presence of the high cost of business transactions and
attendances of structural inertia of the IBC form some of the weakness in the market. These
weaknesses make it possible for the management of the IBC to concentrate on practical ways of
improving business operations. As urged by Kohpaiboon and Jongwanich (2013, p. 226) , high
demand in the automobile marketplace and scope in inventing cars that are energy saving in the
economy remains to be some of the opportunities that the IBC has improve its competitive
advantage in the marketplaces. Besides, some of the threats that affect operations of IBC include
cases of occurrences of the global recession, barriers of marketplace entry, and global
overcapacity in the entry. These thereat have been the essential issue that reduces the competitive
advantage of the IBC in the local UK markets along with global marketplaces.
Conclusion

Competitive Strategy of IBC Automobile Company 5
From the research above, several factors affects the operations of IBC in the competitive
marketplaces. Useful analysis done by the management of IBC has been significant in ensuring
that the company remains to be one of the most prominent automotive organizations in the UK
marketplaces. It has become a necessity for IBC to develop an ideal approach to cope with
different uncertainties that can arise during its operations shortly in competing with its chief
competitors. Typical competitive strategies can help IBC to boost its activities and operations
towards achieving valuable market.

Competitive Strategy of IBC Automobile Company 6
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