Hypercompetition is rapid and dynamic competition characterized by unsustainable advantage. D’Aveni, R & Gunther, R Hypercompetition – Hypercompetitive Rivalries. accessed 01/11/; D’Aveni, Richard (). ” Waking up to the New. Using detailed examples from hypercompetitive industries such as computers, alike – a perfect introduction to the battlefield of hypercompetitive rivalries. For my last strategy class at Indiana University, we read the book, “ Hypercompetitive Rivalries”, by Richard D’Aveni. The first four chapters.

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The first four chapters describe ladders of escalation of competition and the dynamic strategic interactions that occur at each step. The fifth chapter describes hypercompetition in more detail while the sixth chapter outlines a New 7-S model for developing competitive strategy. It was a pleasure to read, and I find myself looking at industries, companies, and competition through the lens of this book.

Therefore, price wars can occur, and since no one wins in price wars, competition quickly attempts to escalate to the second dynamic strategic interaction jypercompetitive Quality and Price Positioning.


Hypercompetitive Rivalries – Part 1

For example, Mercedes and Cadillac fight for price and quality in their differentiated position while Stanza and Yugo fought for price and quality in their differentiated position. Those segments also can compete against each other as one takes a cost leadership role and the other takes a differentiation role.

But companies must beware… small niche competitors can flex and stretch into other segments, stealing away market share. But in perfect competition, there are no profits and thus no winners.

They can do this by shifting competition to cost leadership or differentiation again, redefining perceived quality, switching from products to service, masscustomizing, extending product lines, or moving into a rlvalries new industry or niche.

Hypercompetitive rivalries : competing in highly dynamic environments in SearchWorks catalog

In order to escape perfect competition, companies attempt to move up the stages rivslries this escalation ladder faster than competitors.

In the course, we discussed the Old Rip Van Winkle Distillery who makes high-end aged bourbon that takes around 25 years to make.

Thus it has successfully found a niche for those willing to buy — and wait for — hypercomletitive quality aged bourbon. In addition to this company, I can think of so many examples where these stages occur.


Just look at the cereal aisle or chip aisle in the hypercmpetitive store. Every company is trying to differentiate themselves with varieties of flavors, packaging, and ingredients to avoid perfect competition.

Occasionally, Pepsi and Coke will enter into a price war and then quickly use marketing or new product extensions to differentiate themselves again.

Hypercompetition – Wikipedia

They also have used niching and product extensions with their Scion, Daihatsu, and Hino Motors brands. The Free Press,pp. Creating the ultimate cult brand. Home About Contact Me. Hypercompetitive Rivalries — Part 1 Posted on June 25, by michelle. This entry was posted in BooksBusiness. Proudly powered by WordPress.

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