Hypercompetition
Hypercompetition refers to a situation where there is stiff competition between organizations. In a hypercompetitive case, the markets change instantly, and thus it becomes easy to enter a new market (Dutta, 2015). For this reason, it becomes hard for an organization to maintain its competitive advantage. The car industry is an excellent example of a company in a hypercompetitive situation. Companies such as Subaru have been on top of the car industry. However, the change in customer preferences and the market for sports cars deprive the Subaru Company their top-ranking position in the car market.
Porter’s five forces models analyze industrial competition by reviewing the threats a company faces when entering a new market. It also examines the conflict between competitors and the risks of substitutes (Huggins & Izushi, 2015). Contrary to the porter’s model, the flagship model by Rugman analyses how networked business frameworks achieve success in worldwide industries.
The Subaru Company keeps its competitive advantage by designing new models of cars and improving earlier versions. The latest releases have improved driving performance and safety. They are also available in international markets at an affordable price. Thus Subaru, by improving the quality of its cars and selling them at an affordable price, can preserve its position in the car market. In terms of timing, Subaru produces new models of sports cars whenever there are international sports such as car racing, among other events.
National and company competitive advantage are two different concepts. First, the Subaru achieves national competitive advantage by associating itself with international sports such as safari rally. The association fosters trust between the company and its consumers. At the company level, the company maintains the quality and safety of their cars.
References
Dutta, D. K. (2015). Hypercompetitive environments, coopetition strategy, and the role of complementary assets in building competitive advantage: Insights from the resource-based view. Strategic Management Review, 9(1), 1-11.
Huggins, R., & Izushi, H. (2015). The Competitive Advantage of Nations: origins and journey. Competitiveness Review.