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 Satisfaction
• Using Strategic Soothsaying as a
means of seeing and creating
opportunities for disruption
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Capabilities for Disruption
• Building the capability for Speed
• Creating the capability to Surprise
opponents
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Tactics for Disruption
• Shifting the Rules of Competition
• Using Signals to influence future
dynamic strategic interaction
• Executing Simultaneous and
Sequential 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
understanding of how to satisfy
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
empowering employees, the company
can gain the internal motivation and
vision needed to carry out those moves.
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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.
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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
Surprise
Speed 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
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).
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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.
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Tactics for
Disruption
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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.
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Shifting the Rules of
Competition
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.
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Signals
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.
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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.
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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
competitors, 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 in 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
sequential 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.
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