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Hypercompetition

The document discusses the concept of hypercompetition, where firms engage in intensive competitive moves to constantly imitate each other, creating disequilibrium with no clear competitive advantages. Key drivers of hypercompetition include changing customer expectations, new technologies, and lowering barriers between nations and industries. Under these conditions, firms battle on factors like price, quality, timing, expertise, resources, and market position. The document presents D'Aveni's 7S framework as a model for firms to achieve goals like disrupting the status quo, gaining temporary advantages, seizing opportunities, and sustaining momentum. Firms can also create impediments to competitors through scale, pricing strategies, and contractual relationships.

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amit
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266 views6 pages

Hypercompetition

The document discusses the concept of hypercompetition, where firms engage in intensive competitive moves to constantly imitate each other, creating disequilibrium with no clear competitive advantages. Key drivers of hypercompetition include changing customer expectations, new technologies, and lowering barriers between nations and industries. Under these conditions, firms battle on factors like price, quality, timing, expertise, resources, and market position. The document presents D'Aveni's 7S framework as a model for firms to achieve goals like disrupting the status quo, gaining temporary advantages, seizing opportunities, and sustaining momentum. Firms can also create impediments to competitors through scale, pricing strategies, and contractual relationships.

Uploaded by

amit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Hypercompetition?

 Intensive competitive moves by all players

 Competition imitates competitive moves by any


player

 Disequilibrium

 No clear competitive advantage


Driving forces of
Hypercompetition
 Customer Expectations

 Technological changes

 Lowering of entry barriers around


Nations/Industries

 Deep pockets of some firms


Battles of Hypercompetition
fought on
 Price & Quality

 Timing & know how

 Strongholds

 Deep pockets
Sustaining competitive edge-
D’Aveni’s 7S framework
• Stakeholder satisfaction
• Strategic soothsaying
• Positioning for speed
• Positioning for surprise
• Shifting the rule of the game
• Signalling the strategic intent
• Simultaneous & sequential strategic thrust
4 key goals using the 7S model

• Disrupting the status quo

• Creating temporary advantage

• Seizing the advantage

• Sustaining the momentum


Impediments to competitors

Economies of size

Deterrent pricing

Forming of contractual relationships

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