Question

How can a company achieve a sustainable competitive advantage when its industry becomes hypercompetitive? Provide examples of some companies that you believe have been successful at this.

Answer 1

When an industry becomes hypercompetitive where one characteristic or feature makes it highly competitive it is very difficult to have sustainable competitive advantage, a company can analyse and find out what feature or characteristic is causing this hypercompetition and can use that to make themselves sustainable. They can come up with something of that feature which would give it a sustainable competitive advantage. Companies who were successful in doing so are Microsoft which created it's own mark when there is high competition in the industry , Facebook which used the increasing trend of social media and created a sustainable mark of it's own in the industry , Nike which remains at the top of the competition even when it is high and there are many competitors fighting to sustain in the industry etc.,They succeeded in using the factors responsible for hyper competition as their advantage and are hence successful in sustaining themselves.