Hypercompetition in the technology industry. How and why technology companies embrace rapid product iteration plans to win bigger market share.

1. Hypercompetitive Markets

2. Hypercompetition represents a
state of competition with rapidly
escalating levels of competition and
reduced periods of competitive
advantage for firms.*
*Organization
Science | March 1, 2000

3. Introduction

4. Apple
How does Apple, the #1 innovative
company in the world, innovate and
create game-changing innovations
such as the
iPod, iTunes, iPhone, iPad and more?
What is Apple's secret recipe for
innovation success?
Facts:
Secretive company
Table Market Leader
Multiple Moats
Diversified Global Player

5. Amazon
Amazon.com, Inc. (AMZN), is a
leading global Internet company and
one of the most trafficked Internet
retail destinations worldwide. How can
they take market share from Apple?
Facts:
Huge partner network
Table Market Late Comer
Moats in Different Industries
Diversified Global Player

6. Market Overview

7. Market Overview – Models

8. Market Overview – Price Wars

9. Apple vs Amazon
Apple
Amazon
Generally competes by differentiation
Generally competes on price/long term
view
Closed ecosystem
Open ecosystem
Huge Product Legacy
Open Possibilities
What would you do?

10. Recent News 1
• Amazon to Reduce Kindle Fire Manufacturing Orders by
50% for Q1 2012
• http://www.itproportal.com/2012/01/23/amazon-reduce-
kindle-fire-manufacturing-orders/
• January 23

11. Recent News 2
• Samsung Announces a 7.7 inch Tablet
• http://news.consumerreports.org/electronics/2012/01/ces-
2012-amoled-comes-to-samsung-tablet.html
• January 9

12. Windows 8 Tables….

13. Apple vs Amazon vs Samsung vs…

14. Multi-staged Competition?
• Brazil Approves Tax Incentives to Begin iPad Production
as Apple Targets its Next Major Market

15. Hypercompetitive Environments
PROS
• Fast-paced
• Everything is
temporary
CONS
• Aggressive
• Moats might not last

16. Takeaways

17. Takeaways
• In hypercompetitive environments competition
is fast
• Usually competitors are forced to compete by
using satellite businesses/advantages
• Secrecy, moats and execution speed play a key
role in the competitive dynamics
• Segmentation of competitors might help in
getting a clearer view
• The first question to ask might be: who is this
player competing against?