Quiz 3. Name: Shamir Arif. Reg. ID: 16E00101. Q1. Is it

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Quiz3Name: Shamir ArifReg. ID: 16E00101Q1. Is it possible for a company to have a sustainable com- petitive advantage when itsindustry becomes hyper- competitive?Hyper competitionisasituation in which there is a lot of very strong competition betweencompanies, markets are changing very quickly, and it is easy to enter a new market, so that it isnot possible for one company to keep a competitiveadvantage for a long time.It isimpossiblefor every company to have sustainable advantage when its industry becomeshyper competitive. But firms that have unique, valuable, inimitable resources leading tosustainable competitive advantages can retain itscustomers.Many companies that are in this hyper competitive industry would use the strategies that areadopted by the successful market leaders. However, the things that have worked for othersmay not work for one. Therefore, it becomes difficult to maintain the competitive advantage.A company can stay competitive in this hyper competitive industry by keeping itself up to datewith the changing environmental trends and should be able to take risks. Companies shouldcannibalize their products to sustain competitive advantage.In addition to this, it is important for the companies to stay on par with the latest trends andembrace them with the ever-changing conditions.Example of this would be in the early 90's the personal computer industry was hypercompetitive. Anyone could buy motherboards from dozens or suppliers and build their ownbrand of computers. There was one little company that stood up was PC's Limited. Theircompetitive strategy was to build to order, to be extremely operationally efficient, and to pricecomputers forward, estimating the decrease in component cost between the time the ad wasplaced and when a customer got the magazine and placed an order. PC's Limited wassuccessful, and later changed its name to Dell Computers.In both cases, the competitive advantage has been sustained over long periods of time. In thecase of Dell, it served it well to grow to be a multi-billion dollar public company, even if todaythat strategy is somewhat obsolete.
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