Porter talks about Japanese-style competition where all rivals offer most if not all product varieties, features, and services. They employ all channels and match one anothers' plant configurations. What is the key danger of such competition? It degrades overall quality of product and services. Companies will have an equal share of the market. Customers are more likely to pay a higher price for their products. It minimizes operational effectiveness. Over time, it leads to competitive convergence and hypercompetition