Comparative Analysis and Business Strategies of the ROLEX Company

This report provides a comprehensive analysis of the ROLEX company, focusing on its competitive positioning and business strategies across different global markets. The report begins with an introduction that highlights the importance of competitive analysis in today's business environment and provides background information on ROLEX. Task 1 includes a comparative analysis of ROLEX's competitive position in various markets, considering factors such as competitors, innovation, financial position, and value proposition. The report also explores the issues involved in trading across borders and how ROLEX adapts its strategies to different market conditions, including the USA, Japan, and China. Task 2 focuses on the company's requirements for enhancing its business, incorporating factors like promotion and competition. The conclusion summarizes the key findings and implications of the analysis. The report uses various sources to support its claims. Overall, the report provides valuable insights into ROLEX's market strategies, competitive challenges, and its approach to maintaining a strong brand presence in a competitive global market.

REPORT ON
MULITNATIONAL
COMPANY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A.) Comparative analysis of company and its competitive position in different markets. . . .1
B.) Issues required to consider while trading across the borders...........................................7
TASK 2..........................................................................................................................................11
A.) Company requirement in enhancing their business........................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
In this competitive world, where industries are bringing various technology and
innovation which can help them to make themselves stable in market by competing with various
industries. Although, company try to satisfy their customer in great manner so that they can
make consumer's a existing for longer period (Manova, Wei and Zhang, 2015). Different firm do
make strategy and competitive analysis which can help them to compete with other entity and
manipulate enterprise to work harder and attain their goals and objectives in proper manner as
well. The report is based on ROLEX, it is a wrist watch firm and produce quality product and
services for millions of people. Firm was founded by Hans Wildorf and Alfred Davis in the year
around 1905, although entity is having a approx. 2800 employees in organisation too.
Assignment will include like knowing competitive position in market through making analysis of
different things in market and it will also consider the issues which affect while trading across
the boundaries of country and what are the criteria is there which is needed to enhance business
and entity in proper manner as well. These are the things which help entity to work in great
manner and thus it is required by industry to identify the culture and working scenario of
different country. ROLEX even though a multinational company and working in proper format
too and thus it comply them to work hard and make people satisfy with their product and earn
higher profits as well.
TASK 1
A.) Comparative analysis of company and its competitive position in different markets.
Competitive positioning of any company refers to stand out differently from competitors
that are present in the business environment. It enable them to create diversified products to
satisfy their customers efficiently (Yunus, Moingeon and Lehmann-Ortega, 2010). In order to
determine the competitive edge of ROLEX, they have to perform comparative analysis of
various markets where they have established their operations. ROLEX have to consider all
factors in order to carry out competitive analysis properly and accurately which is as follows: Locating competitors: It is very important to find out the number of competitor that is
rendering similar services to their clients in market place. ROLEX have to examine the
strategies of their rivalries in order to study their policies and regulations implemented by
them. This aid them to perform accordingly.
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 Innovation R & D: Research and development department of ROLEX continuously
concentrate on launching new and innovative products to satisfy their needs and wants.
Innovation refers to introduction of advanced and modern ideas so that they can able to
stand apart from others significantly (Killing, 2013). There are number of conditions that
occur which need proper attention so that proper research can be conducted accurately.
(Source:- Competitive Analysis, 2017)
 Reviewing Financial position: Finance is a very important resource that is available with
the company and hence they have to manage it properly so that there is no wastage occur
in the system. There are numerous risks that are present in business environment which is
dynamic in nature and keeps on changing with time. Thus, it is essential to evaluate such
position effectively (Scherer and Palazzo, 2011). Money is needed in almost every
activity which is performed in the system. Strategies that are adopted by competitors: It is very difficult to survive in the
environment which is full of number of competitors and therefore, it become
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Illustration 1: Competitive Analysis

indispensable to study such values and than make steps accordingly so that final decision
can be taken easily. There are various strategies that are drawn by each company that is
related to production, manufacturing, product development, logistic management,
distribution channel. All these factors have attached responsibilities that has to be
conducted properly. Value Proposition: This approach include finding out the needs and wants of customers
that are present in market place. It helps them to design their mission and vision and
therefore allow them to perform accordingly. Customers are consider real kings of market
area and therefore they are one of most essential resource that has to be focused promptly
(Beamish, 2013). It is the duty of business firm to increase the value of products
continuously and keeps on adding new things to retain larger number of customers for
longer period of time. Competitor's profile: Every company works have set rules and regulations on which
work process has to be carried out effectively and efficiently. There are objectives and
aims that has to be followed by everyone that is working in that organisational system.
Higher management level have to draft strategic policies that is applied to whole system.
 Competitor's market perception: This approach involve studying nature of their party of
ROLEX that are customers, debtors ROLEX, creditors and many more. Analysis function
is carried out in this factor that is done to find out various elements that have to improve
with time so that final objectives can be attained. Reputation management is also a
important concept that refers to managing the image and goodwill of institution in the
current market place. It is essential to focus on perceptions that are prevailing in current
market place so that proper examination and evaluation can be conducted and work can
be carried out smoothly.
The Comparative analysis help company to know that in which position they are in
different market of this world, the ROLEX is being ranked differently in various markets and
thus according to such its price value is decided (Doz, 2011). Moreover, company do set their
prices according to the country requirement analysis and ROLEX is such firm whose Wrist
Watches are just dream to wear as because it is very much costly and it is a brand which shows
status of people. Competitive analysis by firms help them to know about market situation and
make strategy according to that only. Strategy and decision are made by industry to fight with
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competition and effective working can be seen in organisation and thus every department and
human resource of company has to work with coordination to provide better satisfaction to each
and every employee in perfect way too.
Although the company is having a standardise competitive position at various
marketplace and it can be understood with this:-
Elements USA JAPAN CHINA
Price The price of ROLEX
in USA is quite
different from other
countries as living of
standard of people in
such country is higher
and they believe in
spending what they
have earned and thus it
make them to perform
according to such only
(Enderwick, 2013).
The price of ROLEX
in USA is quite higher
as well.
This is the market
where prices fluctuate
in great manner and
thus company do set
their prices according
to environment of
market and thus it also
make company to
receive the income in
fluctuation way. Japan
is a place where
technology take
changes in regular
basis and according to
such ROLEX set their
prices which affect
their productivity as
well.
China is a place where
other company does
not be able to stand in
market as because
CHINA is a place
where technology
changes in huge
manner and thus it
makes them to change
prices according to
that only. In china
there are maximum
industries who work
hard to be stable in
market and ROLEX is
company who set their
reasonable prices in
China so that people
can buy their watches
too.
promotion In USA the ROLEX
make promotion in not
at that much level as
because the company
Japan is market where
promotion are always
done in great manner
as because various
China is that
marketplace where the
promotion should be
there of product as this
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is having a Brand
which does not need to
be promoted on huge
manner. Promotion is
done of ROLEX but in
effective way which
can attract people to
buy their product in
great way too.
products are available
in market and thus it is
required to have a
promotion of ROLEX
in market. Even
though this criteria can
be used by company to
promote their product
and attract the
maximum number of
people toward their
firm (Kerzner and
Kerzner, 2017).
help in making
customer aware about
the availability of
product and services in
market and thus it is
responsibility of firm
to provide customer
satisfaction in better
manner although.
Competition In USA the
competition level is
not that much level as,
firms do make better
strategy and decision
which help in making
a proper policy in
industry and it also
convert them to have a
work in right context
too. Even though the
working environment
of such country is
fantastic in
comparison to other
countries.
In Japan the
competition is on high
level and thus it makes
company to perform in
better manner as well.
Sometimes strategy
and decision made
also fails dues to
changes in market
environment and it
makes firm to face
losses on great level
too. Working
environment in Japan
is very bad and it
make organisation to
face many issues as
well.
In China the
competition is on peak
level and it makes
every firm to perform
in better manner as
well and this also
convert every
company to make a
better strategy and
decision in higher way
although these also
gets failed in such
market because
technology in china
changes in great way
and even enterprises
does not be able to
cope up in fast
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changing environment
which suddenly make
them to perform
according to scenario
only (Van der Heijden,
2011).
Rank of ROLEX in
different countries.
Moreover the ROLEX
brand in USA comes
in the list of top 5
brands in USA.
ROLEX is being
considered as sign of
Royalty and this also
shows the living of
standard of people.
Although in JAPAN,
ROLEX comes in list
of top 20 Brands in
watches. Even though
the high prices and
luxury item, normally
make people to ignore
the product to buy and
thus make it in top 20
position in country.
Therefore, in China
the ROLEX is being
considered in the list
of top 10 brands in
watches as because
this is something
which is a dream for
many people to buy
and wear it. Hence, it
is a quality product
and having high
costing in
manufacturing which
makes its prices higher
in market.
Normally. This is that which help ROLEX to analyse the different market and bring
various technology to improve their technology so that they can also reduce their production cost
and firm can also minimise somehow their prices as well. Although with such scenario the
company came to know about their competitive position in various market of world.
ROLEX is that brand which is a signature of quality product and services and being of
high prices as well and this also considers the standard of living as well (Kindström, 2010).
Moreover, it is require by company to know the language of different country and their culture as
well which differentiate each market from others and thus it also make them perform according
to market situation and bring effective strategy and decisions which can help them to earn higher
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profit too with attainment of their goals and objectives too. Generally, customer are rationale in
nature and they need quality for what they are paying the amount, but in case of ROLEX they
provide quality product and services as they do have a higher prices as well. Although it is
required by industry to know the market situation and then take step forward in proper format
too.
B.) Issues required to consider while trading across the borders.
ROLEX doesn't need any intimation, a big brand of watch acquiring a place in
international trade. It got a rank on #57 in Forbes. It is a high fashion brand which leads to other
brands with a ultimate attribute. A high street brand is alluring its posh customers through its
designing impact a forever lady love diamonds. Intricate designing is is the heart of its patterns.
As it pleasing its consumer with a functioning and charismatic looks. It adorn a person by
offering an elegant ambience (Teece, 2010). Though it is a luxury product which is economically
not affordable by everyone instead of this, have a famous and prominent status in trade across
the borders.
All opulent brands may be late to impact socially, but it have a great appearance. A Swiss
watchmaker , which is relocated from London to Geneva. It defines itself as beauty object, and
most artefacts. It has proven consistency of influential symbol.
Private international law is the body of conventions which regulates private relationship
across globe by models law, legal guides and other documents. It resulted in enhance of cross-
border trade in goods, capital, investment services associated with transportation cost cutting.
Liberalization led to reduction of quotas, tariff duties and other obstacles to move freely goods
and capital beyond the borders. Procedural requirements are organized by Doing business during
trading process. All goods which are going to be export and import keep in record from
contractual agreement between two parties. On delivery of all goods documents are required for
the clearance. So it needed that all documents should be prepare. Exporting goods range lies
from packing in factory, departure and exit from port. Importing goods charges includes, arrival
at the port of entry, cargo delivery, local freight, shipping lines, custom brokers complete
procedure.
There are some main issues while doing business across the boundaries and in many
countries as well (Turban, Sharda and Delen, 2011). ROLEX is that firm which is being there in
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many parts of the world and they try to make their firm stable in market and look forward to earn
higher income in great manner as well. Some of those are as follows:-
Several trade patterns:- ROLEX is a multinational company and has to look forward to
deal with the different apttern and working with different countries of world as well. Although it
is required by industry to know the policy which regularise import and export of products too.
These are such which also impose some constraints and limitation on business as well.
Measures: Although not only ROLEX but every company looks forward to export their
resources and products in better manner, even manufactured products can also be included in this
(Jeston and Nelis, 2010). For such thing measures are considered and some of those are (Tariff,
Non- tariff, quota restrictions and formalitities are also included). Normally this is such which
also come in the way of trade and unfettered with flow of foreign business in better manner as
well.
Economic uninons:- There is something that has to inlcude the increasing tendency with
among various and several group of things which also make Economic unions as well and this is
something that has to negotiate the various terms for firms with different countries too.
National policy and procedure of development:- Moreover, country is also having a
desirous things which help in achieveing the self-sufficiency and such thing also follow some
strategy for importing the capital goods in right context with having a current technology and
creating restrictions in import of different product in the consumer goods as well with aspect of
minimising the bill of import in great way as well.
Procedural difficulties too:- It is seen that various countries do have different
procedure, practises and formalities in order to gain the regulation of export trade in great way
(Li, Da Xu, and Zhao, 2015). Some of those things which has foreign exchange control system
and other too have firmulated the thing which help to keep the view with the national objectives
and has also forced to posed particular problems and issues in export and import too.
Few other issues:- The issues which has been discussed above and thus, there are many
other difficulties are also there ans some of those are as follows like:-
 Business and organisations are those which has not recognised their working in better
manner and they haven't identified the importance and needed thing in international
marekt as well.
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 Inflation, high prices and black are those marketing which is in market. This is something
which also persot the differet situation and this help in setting the price level beyong the
expectation of customers abroad and it is dependednt on the customers how badly they
need our products too.
 Moreover, having a poor ethical business is somehwere aslo responsible for the
international business as well.
 This internal economy and thus it is be like managed and it is quite badly within recent
years. If continously, cannot be able to supply the essential need in great manner and thus
it also make them to have suplly of the other nations as well.
Doing business records the time and cost which is related to logistics process, of
importing and exporting goods (Goleman, 2017). It measures all time and costs that involves
three sets of procedures namely documentary compliance, border compliance and domestic
transport.
There are some special terms in global trade management, which are as follows-
Export Management – It handles and contours complex transmit products to ensure
quick transfer to customers within time across national borderline. Through compiling with
relevant regulations and justify the economical risks.
Import management – It helps to custom clearance for importing shipments to minimize
expensive buffer.
Trade preference management- it determines abilities to solicit vendor testimony,
eligibility of products for orientation treatment and it also issues certificate of source to clients.
Restitution management – it enables client to manage and figure out the recovery for
trade good of common agriculture products.
ROLEX should be aware about some certain difficulties which occurs across border
issues. That includes:
Double indemnity – It refers that a firm must pay both side taxes, in home and abroad. It
is direct resulting of beyond borders (Chen and et. al., 2011). It is an insurance policy which
assured the beneficiary if loss hap due to some circumstances.
Language and culture clashes – when expanding a business beyond limits, hurdle is
language and culture. International trading environment is one of fast, around-the-clock change
by culture and communication. These obstacles and lead to real loss in business. Before taking
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a business crossways to borderlines, it will be better to sensible about the language and culture
so that may harm the business. If one should not communicate with civilians they can't sustain in
globalization. Exchanging cultural information from the inhabitants can take trade on hike.
Leverage all available resources – A successful company should recognize majority of
respondents. They can study their network, websites and marketing ,materials of actual
commercial partners and clients. It needed to sort the operations with available resources.
Internet is also helpful to record research data on your fingertips. It can be analysed by travelling
to marketplace this will assist you to derive strategic plans (Agarwal, Audretsch and Sarkar,
2010). Finding g complementary in market companion and getting the inside culture view
regional operational procedures. Before moving to global market one should take a look on
resources that needed to support in new venture.
Research the finance position needed – Research finance position of market that
needed to develop a business across the country. However, ROLEX doesn't need any finance
research but perhaps expanding hands may lead to some hinders. To overcome the problems it
will be good that to look after investment in new marketplace. Because it is high class brand,
demand of the fine product may not ensure. The country's economical condition can also pull
brand existence.
It will drag a company's assets on inclination, which leads to earn receivables tools and
supplement commercial finance product for increase company's reputation in foreign markets.
Understand the benefits beyond sales – The exporters should understand the revenue is
surplus (Denisia, 2010). The companies which are sales their products overseas can help in in
house operational activities in developing new products and services. Exporting and importing
goods will provide a new talent while recruitment.
There are some challenges which should also take under concern:
Constant regulation changes – The regulations are keep changing with complexity to
attain the great deal of process that a product remains trustworthy with legal requirements.
Increasing regulations – A business should be ready to adapt whole new regulatory.
Lack of harmonised standards. As regional legislation changes due to growing
concerning issues of safety, product quality, and environment.
High compliance costs – Effective cost of production increases due to increasing
regulations and requirements to satisfy multiple distinct guidelines for target markets.
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