The Marketing Mix in a Global Context

Module 8: The Marketing Mix in a Global Context

Jose Carlos Ayala Ayoub

Bachelor of Science in Business Administration, Walden University

MRKT-4504D-2, Global Marketing

Dr. Verl Anderson

October 29, 2021

The attributes that contribute to having a comparative advantage are innumerable. The ease of accessing new technologies can also be considered another attribute of competitive advantage, however these attributes are often difficult to maintain in the long term. Therefore, companies seek to find new competitive advantages and enhance those they already have. The goal is to position yourself better than your competitors. This can be achieved by offering your customers a higher value for your products or services.

According to Keegan, W. J., & Green, M. C. (2014), competitive advantage exists when there is a match between a firm’s distinctive competencies and the factors critical for success within its industry. Now thus, it could be said that a competitive advantage is called an advantage or characteristic that a company has with respect to other competing companies, which makes it different and allows it to attract more consumers to improve the company.

According to Porter’s five forces model, industry competition is a function of the threat of new entrants, the threat of substitutes, the bargaining power of suppliers and buyers, and rivalry among existing competitors. The five forces Porter describes are: bargaining power of customers, bargaining power of suppliers, threat of new entrants, threat of new substitute products, and rivalry between competitors. (Keegan & Green, 2014)

IKEA, Volkswagen, and Lego are large companies with a great competitive advantage over their competitors. For these companies, Poters Five forces model have accounted for the progress and success of these companies because analyzing the industry in which a company is located is one of the best decisions you can make at the strategic planning level. For this reason, Porter's 5 forces model has allowed them to analyze the competition and the industry in an exemplary way.

For each of these companies (IKEA, Volkswagen, and Lego), Porter's 5 forces are the pillars of a model that allows identifying and analyzing the variables that define the structure and level of competition that exists within a particular industry. Consequently, highly competitive strategies for the development and success of companies.

Starting from the initial definition, the Porter model helps the companies understand the structure and level of competition that exists within a particular industry. This model has helped these companies understand the level of existing and potential business lines, establish a clear margin with respect to expected profitability, make better business-level predictions, develop more competitive strategies, increase the profitability of their business, focus, and optimize their marketing strategies and understand what is the competitive advantage offered by their companies. (Quintana, C., 2021)

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