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3 visit: www.studyMarketing.org 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.
4 visit: www.studyMarketing.org Hypercompetition speeds up the dynamic strategic interactions among competitors.
5 visit: www.studyMarketing.org Hypercompetitive behavior is the process of continuously generating new competitive advantages and destroying, obsoleting, or neutralizing the opponent's competitive advantage
6 visit: www.studyMarketing.org ……..thereby creating disequilibrium, destroying perfect competition, and disrupting the status quo of the marketplace.
7 visit: www.studyMarketing.org Strategy in the Hypercompetion Era Vision for Disruption Capabilities for Disruption Tactics for Disruption
8 visit: www.studyMarketing.org Vision for Disruption Superior Stakeholder SatisfactionEnvisioning disruptions that create Superior Stakeholder Satisfaction Strategic SoothsayingUsing Strategic Soothsaying as a means of seeing and creating opportunities for disruption
9 visit: www.studyMarketing.org Capabilities for Disruption SpeedBuilding the capability for Speed SurpriseCreating the capability to Surprise opponents
10 visit: www.studyMarketing.org Tactics for Disruption Shifting the RulesShifting the Rules of Competition SignalsUsing Signals to influence future dynamic strategic interaction Simultaneous and Sequential Strategic ThrustsExecuting Simultaneous and Sequential Strategic Thrusts
11 visit: www.studyMarketing.org Vision for Disruption
12 visit: www.studyMarketing.org Superior Stakeholder Satisfaction Superior stakeholder satisfaction is the key to winning each dynamic strategic interaction with competitors.
13 visit: www.studyMarketing.org Superior Stakeholder Satisfaction an understanding of how to satisfy customers. The process of developing new advantages or undermining those of competitors begins with an understanding of how to satisfy customers.
14 visit: www.studyMarketing.org Superior Stakeholder Satisfaction By discovering ways to satisfy customers, the company can identify its next moves to seize the initiative.
15 visit: www.studyMarketing.org Superior Stakeholder Satisfaction By empowering employees But customers are not the only stakeholders that must be satisfied. By empowering employees, the company can gain the internal motivation and vision needed to carry out those moves.
16 visit: www.studyMarketing.org Strategic Soothsaying Strategic soothsaying Strategic soothsaying is a process of seeking out new knowledge necessary for predicting or even creating new temporary windows of opportunity that competitors will eventually enter but that are not now served by anyone else.
17 visit: www.studyMarketing.org 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.
18 visit: www.studyMarketing.org Capabilities for Disruption
19 visit: www.studyMarketing.org Speed and Surprise Speed and surprise Speed and surprise are needed to take advantage of opportunities, to move quickly against competitors, or to respond to a competitor's attack.
20 visit: www.studyMarketing.org Speed and Surprise Speed 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).
21 visit: www.studyMarketing.org Speed and Surprise Surprise is also crucial to success. 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.
22 visit: www.studyMarketing.org Tactics for Disruption
23 visit: www.studyMarketing.org Shifting the Rules of Competition redefine the battlefield. 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.
24 visit: www.studyMarketing.org Shifting the Rules of Competition that transform the industry The company finds new ways of satisfying customers that transform the industry, such as adapting the personal computer to serve the mainframe computing industry or inventing the disposable razor to transform the market for standard razors.
25 visit: www.studyMarketing.org Signals Signals stall the actions of competitors Signals — verbal announcements of strategic 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.
26 visit: www.studyMarketing.org Signals preannounce or fake aggressive offensive moves 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.
27 visit: www.studyMarketing.org Simultaneous and sequential strategic thrusts stun or confuse competitors Simultaneous and sequential strategic thrusts are the use of a series of actions designed to stun or confuse competitors, disrupting the status quo to create new advantages or erode those of competitors.
28 visit: www.studyMarketing.org Simultaneous and sequential strategic thrusts actions in hypercompetition 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.
29 visit: www.studyMarketing.org Simultaneous and sequential strategic thrusts a series of simultaneous or sequential actions By manipulating competitors' reactions using a series of simultaneous or sequential actions, they result in the initiating company's advantage.
30 visit: www.studyMarketing.org Source of Reference: Richard D’Aveni, Hypercompetition : Managing the Dynamics of Strategic Maneuvering, Free Press.