1 visit: hypercompetion strategy
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Hypercompetion Strategy
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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.
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Hypercompetition speeds up the
dynamic strategic interactions
among competitors.
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Hypercompetitive behavior is the process of continuously generating new competitive advantages and destroying, obsoleting, or neutralizing the opponent's competitive advantage
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……..thereby creating disequilibrium, destroying
perfect competition, and disrupting the status quo
of the marketplace.
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Strategy in the Hypercompetion Era• Vision for Disruption
• Capabilities for Disruption
• Tactics for Disruption
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Vision for Disruption
• Envisioning disruptions that create
Superior Stakeholder SatisfactionSuperior Stakeholder Satisfaction
• Using Strategic SoothsayingStrategic Soothsaying as a means of seeing and creating opportunities for disruption
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Capabilities for Disruption
• Building the capability for SpeedSpeed
• Creating the capability to Surprise Surprise opponents
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Tactics for Disruption
• Shifting the RulesShifting the Rules of Competition
• Using SignalsSignals to influence future dynamic strategic interaction
• Executing Simultaneous and Simultaneous and
Sequential Strategic ThrustsSequential Strategic Thrusts
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Vision for Disruption
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Superior Stakeholder Satisfaction
Superior stakeholder satisfaction is the key to winning each dynamic strategic
interaction with competitors.
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Superior Stakeholder Satisfaction
The process of developing new advantages or undermining those of
competitors begins with an an
understanding of how to satisfy understanding of how to satisfy
customers.customers.
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Superior Stakeholder Satisfaction
By discovering ways to satisfy customers, the company can identify its next moves
to seize the initiative.
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Superior Stakeholder Satisfaction
But customers are not the only stakeholders that must be satisfied. By By
empowering employeesempowering employees, the company can gain the internal motivation and
vision needed to carry out those moves.
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Strategic Soothsaying
Strategic soothsayingStrategic 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.
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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.
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Capabilities for Disruption
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Speed and Speed and SurpriseSurprise
Speed and surpriseSpeed and surprise are needed to take advantage of opportunities, to move
quickly against competitors, or to respond to a competitor's attack.
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Speed and Speed and SurpriseSurprise
SpeedSpeed 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).
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Speed and Speed and SurpriseSurprise
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.
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Tactics for Tactics for DisruptionDisruption
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Shifting the Rules of Competition
Shifting the rules of competition is concerned with actions that redefine redefine
the battlefield.the battlefield. By shifting the rules of the game, the company creates new
opportunities to satisfy customers.
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Shifting the Rules of Competition
The company finds new ways of satisfying customers that transform that transform
the industrythe 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.
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SignalsSignalsSignals — verbal announcements of
strategic intent — are important preludes to more powerful actions. Signals can
stall the actions of competitorsstall the actions of competitors or create uncertainty that erodes their will
to defend against attacks.
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SignalsThey can preannounce or fake preannounce or fake
aggressive offensive movesaggressive 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.
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Simultaneous and sequential strategic thrusts
Simultaneous and sequential strategic thrusts are the use of a series of actions
designed to stun or confuse stun or confuse
competitorscompetitors, disrupting the status quo to create new advantages or erode those
of competitors.
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Simultaneous and sequential strategic thrusts
Whereas traditional strategic actions have been treated one at a time, actions actions
in hypercompetitionin hypercompetition are used in combinations that are difficult to unravel
and difficult to defend against.
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Simultaneous and sequential strategic thrusts
By manipulating competitors' reactions using a series of simultaneous or a series of simultaneous or
sequential actionssequential actions, they result in the initiating company's advantage.
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Source of Reference:Richard D’Aveni, Hypercompetition : Managing the Dynamics of Strategic Maneuvering, Free Press.