International Business- Global Chocolate Wars Between Mars and Ferrero Essay

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Global Chocolate Wars between Mars and Ferrero
In the field of internationalization of business, entrepreneurs are required to think globally and have an understanding of international culture. Entrepreneurs need the ability to understand different values, beliefs, behaviors and business strategies of different businesses within other countries in order to be successful in internationalization of business. Mars and Ferrero are two world-leading food manufacturers, especially confectionary products. This essay aims to analysis Mars and Ferrero in terms of internationalization and discuss some of the key success factors that has transformed both companies into a truly international group. Both companies have approached different strategies
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Mars’ Competitive Advantage: Porter’s Diamond
The Porter’s Diamond model states that competitive advantage is formed and maintained through a highly localized process (Czinkota, Ronkainen, & Moffett, 2005). The 4 main factors under this model are used to analyze and highlight Mars' international competitiveness over Ferrero.
Factor conditions
Human resources
Mars and Ferrero adopt IHRM policies to achieve international competitive advantage, and they also support diversity in the workplace (Mars, 2012; Ferrero, 2009) that enables organisations to compete globally (Fine , 1996).
Physical Resources
Both companies aim towards the sustainability of raw materials and purchase certified cocoa to produce their chocolate (Mars, 2012; Ferrero, 2009). This gives them a competitive edge over their competitors.
Knowledge Resources
Mars and Ferrero has experiences in first-tier countries may serve as a guideline for doing business in lower-tier countries, and some competences developed during the past decade may prove useful (Allen, 2011).

One can observe from above that in terms of human, physical and knowledge resources, Mars and Ferrero are equally competitive. However, in terms of infrastructure, Mars is more competitive.
One of Ferrero’s strengths is its progressing research on creating more unique and innovative products. Ferrero’s R&D department, Soremartec,