4 Stages of Hypercompetition

4 Stages of Hypercompetition

D'Aveni argues sustainable competitive advantage is not really possible. He shows a mechanism that causes faster and faster erosion of competitive positions. D'Aveni's four stages of hypercompetition:
1) Advantage based on differentiation (quality) > over time the quality difference gets eroded and price wars begin;
2) Advantage based on raising barriers to entry > over time the barriers get eroded by outflanking and niching by more flexible competitors;

3) Advantage based on know-how > over time the superior know-how gets eroded as technology moves on (Schumpeter);
4) Advantage based on deep pockets (mergers, acquisitions, market power) > over time this fails as pockets are depleted in the attempts to fend-off aggressive competition.

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		1 Brian, USA
	Hypercompetition: Competition is good Competition is good. Kill the weak, eat the slow, and may the best idea and execution win. It got ... Sign up

		1 Buli, South Africa
	Why Competition is Good Strategically choosing the right competitive advantage for your firm and mixing it with your integra... Sign up

		0 Johnson Jaiyeoba Student (University), Nigeria
	Competition is the Beginning of Every Industry Competition is actually the beginning of every industry. Without competition, consumers would be at ... Sign up