4 Stages of Hypercompetition

Competitive Advantage
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Edwin
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. (...) Read more? Sign up for free

  Brian
 

Hypercompetition: Competition is good

Competition is good. Kill the weak, eat the slow, (...)

  Buli
 

Why Competition is Good

Strategically choosing the right competitive advan (...)

  Johnson Jaiyeoba
Student (University), Nigeria
 

Competition is the Beginning of Every Industry

Competition is actually the beginning of every ind (...)

 

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