A highly competitive market is characterized by a large number of players, the presence of leading brands, and the constant emergence of new companies. If all companies sell a homogeneous product on the market with the same characteristics, then only those players who have access to cheaper resources or those who have the opportunity for a high level of investment to support the product will survive the competition. In practice, in highly competitive markets, small companies that produce differentiated goods for a particular segment of consumers can also prosper.
The UAE car market is highly competitive and attracts many manufacturers from around the globe. To be able to retain their profitability, the brands like Hyundai or Subaru should differentiate their products. Using the product differentiation strategy, a company should convey to the consumer the perception that their product offers the buyer what no other market product can offer. This strategy is based on the presence of unique properties and characteristics of the product.
Hyundai’s current mantra is based on achieving reductions in carbon emission by producing lighter and more efficient vehicles. However, it may not be evident to many customers why the company’s cars contribute to the environment. To simplify this image, the company should instead concentrate on producing and marketing hybrid vehicles that are instantly associated with fewer carbon emissions because of the presence of an electric motor. The brand will become desirable to those consumers who are motivated to contribute to the environment. Because Hyundai has been manufacturing and selling hybrid cars for years, the company has the necessary resources to continue to associate itself with an image of a green company. However, other companies, too, have car models that offer a hybrid engine system. To differentiate itself from these brands, Hyundai can introduce SUV hybrid vehicles to the market. Because SUVs are the most popular category in UAE, and current hybrid cars are generally only sedans and hatchbacks, Hyundai may become the first company to deliver a hybrid utility vehicle.
Points of parity are associations that are not unique and may be offered by other competitors in the market. Category points of parity are based on attributes that are common between the products of the same category. For instance, Hyundai’s hybrid SUVs should retain all general qualities of regular SUVs. Correlational points of parity are adverse associations that may result from benefits delivered by the company’s product. For instance, hybrid SUVs may be heavier than their regular counterparts, thus portraying them as slower vehicles. However, the competitive point of being a much more efficient car in terms of carbon emissions successfully overcomes other weaknesses.