The challenge of informality a design of how to adapt in this border area

Abstract

This project focuses on cultural adaptation and marketing analysis on the Colombian-Venezuelan
border, an extremely complex area due to the economic instability of the neighboring country, in addition
to the migration flow and the strong presence of informal trade. The main objective is to detail how
formal companies manage to survive the large volume of illegal trade and the constant change. The study
seeks to generate various changes and practical models that allow traders to transform this challenge into
an opportunity for growth and advancement. Informal competition forces entrepreneurs to seek strategies
for survival beyond low prices, focusing instead on seals of guarantee and quality, as this is the only
viable alternative to achieve higher sales and thus remain in the market. The methodology used is a
qualitative approach with a case study design, selected for its immersion in the real-world context. The
research focused on a single formal company strategically located in Los Patios, Norte de Santander, with
data collected through interviews applied to four key roles: marketing, manager, human talent director,
and administrator. The instrument used was a questionnaire. The results show a significant differentiation
based on quality and guarantee, which is what has maintained their survival, alongside the adaptation to
various forms of payment due to the binational nature of the market. The qualitative analysis confirmed
that the competitive advantage formal companies offer over informal sellers is quality seals and the after-
sales guarantee. Regarding marketing, the study suggested that an approach tailored to both countries is
required because Venezuela prioritizes word-of-mouth, while Colombia is oriented towards offers and
low prices. Achieving success in this area demands considerable effort, as a double analysis must be
carried out, and to secure sales, companies must accept multiple payment methods. The research fulfilled
its objective by successfully interpreting transborder marketing within a highly irregular environment.
The study serves as a roadmap for new and existing entrepreneurs, providing them with the necessary
knowledge to adapt to and understand the challenges of this zone, thereby encouraging and incentivizing
the growth of the formal market.