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  1. 1. Hypercompetion Strategyvisit: www.studyMarketing.org 1
  2. 2. You can download this presentation at: www.studyMarketing.org Visit www.studyMarketing.org for more presentations on Marketing, Strategy, Innovation, and Brandingvisit: www.studyMarketing.org 2
  3. 3. Hypercompetition is an environment characterized by intense and rapid competitive moves, in which competitors must move quickly to build advantages and erode the advantages of their rivals.visit: www.studyMarketing.org 3
  4. 4. Hypercompetition speeds up the dynamic strategic interactions among competitors.visit: www.studyMarketing.org 4
  5. 5. Hypercompetitive behavior is the process of continuously generating new competitive advantages and destroying, obsoleting, or neutralizing the opponents competitive advantagevisit: www.studyMarketing.org 5
  6. 6. ……..thereby creating disequilibrium, destroying perfect competition, and disrupting the status quo of the marketplace.visit: www.studyMarketing.org 6
  7. 7. Strategy in the Hypercompetion Era • Vision for Disruption • Capabilities for Disruption • Tactics for Disruptionvisit: www.studyMarketing.org 7
  8. 8. Vision for Disruption • Envisioning disruptions that create Superior Stakeholder Satisfaction • Using Strategic Soothsaying as a means of seeing and creating opportunities for disruptionvisit: www.studyMarketing.org 8
  9. 9. Capabilities for Disruption • Building the capability for Speed • Creating the capability to Surprise opponentsvisit: www.studyMarketing.org 9
  10. 10. Tactics for Disruption • Shifting the Rules of Competition • Using Signals to influence future dynamic strategic interaction • Executing Simultaneous and Sequential Strategic Thrustsvisit: www.studyMarketing.org 10
  11. 11. Vision for Disruptionvisit: www.studyMarketing.org 11
  12. 12. Superior Stakeholder Satisfaction Superior stakeholder satisfaction is the key to winning each dynamic strategic interaction with competitors.visit: www.studyMarketing.org 12
  13. 13. Superior Stakeholder Satisfaction The process of developing new advantages or undermining those of competitors begins with an understanding of how to satisfy customers.visit: www.studyMarketing.org 13
  14. 14. Superior Stakeholder Satisfaction By discovering ways to satisfy customers, the company can identify its next moves to seize the initiative.visit: www.studyMarketing.org 14
  15. 15. Superior Stakeholder Satisfaction But customers are not the only stakeholders that must be satisfied. By empowering employees, the company employees can gain the internal motivation and vision needed to carry out those moves.visit: www.studyMarketing.org 15
  16. 16. Strategic Soothsaying Strategic soothsaying is a process of seeking out new knowledge necessary for predicting or even creating new temporary windows of opportunity thatcompetitors will eventually enter but that are not now served by anyone else.visit: www.studyMarketing.org 16
  17. 17. Strategic Soothsaying These opportunities can be found by creatively combining products, understanding trends in the business environment that will open up new opportunities, and serving new customer markets with the existing capabilities of the firm.visit: www.studyMarketing.org 17
  18. 18. Capabilities for Disruptionvisit: www.studyMarketing.org 18
  19. 19. Speed and SurpriseSpeed and surprise are needed to take advantage of opportunities, to move quickly against competitors, or to respond to a competitors attack.visit: www.studyMarketing.org 19
  20. 20. Speed and Surprise Speed is also a key part of competitive advantage, because it enhances the ability to serve customers and to choose the moment in time that the firm will enter the market (e.g., as a first mover or a fast follower).visit: www.studyMarketing.org 20
  21. 21. Speed and Surprise Surprise is also crucial to success. The longer the first mover can delay entrance by competitors into the market by stunning them with a surprise attack, the more time there is to create a strong position and make gains before the competition responds.visit: www.studyMarketing.org 21
  22. 22. Tactics for Disruptionvisit: www.studyMarketing.org 22
  23. 23. Shifting the Rules of Competition Shifting the rules of competition is concerned with actions that redefine the battlefield. By shifting the rules of the game, the company creates new opportunities to satisfy customers.visit: www.studyMarketing.org 23
  24. 24. Shifting the Rules of Competition The company finds new ways of satisfying customers that transform the industry, such as adapting the industry personal computer to serve the mainframe computing industry or inventing the disposable razor to transform the market for standard razors. 24visit: www.studyMarketing.org
  25. 25. Signals Signals — verbal announcements ofstrategic intent — are important preludes to more powerful actions. Signals can stall the actions of competitors or create uncertainty that erodes their will to defend against attacks.visit: www.studyMarketing.org 25
  26. 26. Signals They can preannounce or fake aggressive offensive moves that alter the behavior of competitors. Thus, signals can be used to disrupt the status quo and interactions between companies and thereby create an advantage.visit: www.studyMarketing.org 26
  27. 27. Simultaneous and sequential strategic thrusts Simultaneous and sequential strategic thrusts are the use of a series of actions designed to stun or confuse competitors, disrupting the status quo competitorsto create new advantages or erode those of competitors.visit: www.studyMarketing.org 27
  28. 28. Simultaneous and sequential strategic thrusts Whereas traditional strategic actions have been treated one at a time, actions in hypercompetition are used in combinations that are difficult to unravel and difficult to defend against.visit: www.studyMarketing.org 28
  29. 29. Simultaneous and sequential strategic thrusts By manipulating competitors reactions using a series of simultaneous or sequential actions, they result in the actions initiating companys advantage.visit: www.studyMarketing.org 29
  30. 30. Source of Reference: Richard D’Aveni, Hypercompetition : Managing the Dynamics of Strategic Maneuvering, Free Press.visit: www.studyMarketing.org 30