4 Stages of Hypercompetition

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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) > gets eroded and price wars begin;
2) Advantage based on raising barriers to entry > gets eroded by outflanking and niching by more flexible competitors;
3) Advantage based on know-how > eventually gets eroded as technology moves on (Schumpeter);
4) Advantage based on deep pockets (mergers, acquisitions, market power) > eventually fails as pockets get emptied in the attempt to fend off aggressive competition.

competition is good. Kill the weak, eat the slow, and may the best idea and execution win. it got us from horse and buggy to Prius. from Kitty Hawk to Airbus. The more competition, the better the products, the greater the value creation, the better the worldwide standard of living. Competition has driven white collar jobs to India, China, Brazil, mexico, Eastern Europe and Africa. those economies are now burgeoning. Fight for your share!

Strategically choosing the right competitive advantage for your firm and mixing it with your integrated marketing communication will do wonders for you. Both should be based on your target market and your positioning within your sector. Competition is good as it allows you to better yourself, update yourself and keep you focused on set objectives.



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