The paper "Advantages and Disadvantages of Membership of a Trading Bloc" is a perfect example of a marketing assignment. Trade blocs will result in a number of advantages for the firms. A group of companies working together in the trade may seem to get protection from big corporations in terms of survival in price competition. Furthermore, since companies will be working together in an industry, they will benefit from lower production costs and supplier prices as they will have the ability to negotiate better (Boone & Kurtz, 2005). This advantage may arise from the cumulative effect of the demand a trade bloc may have in view of that instead of one company ordering a specific amount of product, many companies require the same product form their supplier and hence putting pressure on the supplier to sustain prices according to the trade bloc member firms (Boone & Kurtz, 2005). Thirdly, a trade bloc may be effective in negotiating in their own favour with the government in terms of taxes and subsidies.
A group of companies can put more pressure on the politics and influence political representatives to set policies and statures of law in their favour.
Through this way, they may effectively get lower-taxed, more subsidies or a tailored wage system and Human resource regulations for themselves (Boone & Kurtz, 2005). Disadvantages: New entrants into the market may face difficulties in surviving if they are not a member of the trade bloc and may never be able to compete in the market. This will derive the market prices to always move in the favour of companies and the consumers and the economy may never reap the benefit of competition in the market (Boone & Kurtz, 2005). The suppliers of these trade bloc companies may have to suffer huge losses and eventually close down as these trade blocs will make up for the majority holding of their business and without them, their output may not be sold efficiently. The companies that are members of the trade bloc may internally be unequal in terms that the stronger firms may dictate their terms and the other members may be forced to follow which may eventually harm these companies to sustain losses as compared to reap benefits within the trade bloc (Boone & Kurtz, 2005). b) explain by using examples, how these advantages and disadvantages may influence the way businesses may market their organisations and services to other businesses within the trading bloc.
15% Tradenex, GridNode and Rosetta have collaborated complexly to provide system solutions in terms of e-commerce to different consumers and have successfully integrated their services to utilise their abilities in a better way. The companies use the individual business networks of each company in the specified region to provide full e-commerce services that relate their technologies as one.
The three companies are well known in the global market but were not big enough to be key players in terms of Markey share (Fill & Fill, 2004). The three companies act as a single Multinational corporation (MNC) in the market of e-commerce and have been successful in providing a cross-platform fully featured list of products that lead to other Business to business marketing tools for corporations. This collaboration has benefited the group as their individual competitiveness has each company to focus on the products that they can make at a relatively cheaper price and eventually all their services and products are combined to make a product that is competitive in term of price in the market.
This has resulted in higher market share of the three companies in the global market (Fill & Fill, 2004).
ReferencesThe paper "Advantages and Disadvantages of Membership of a Trading Bloc" is a perfect example of a marketing assignment. Trade blocs will result in a number of advantages for the firms. A group of companies working together in trade may seem to get protection from big corporations in terms of survival in price competition.