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4 Stages of Hypercompetition

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Competitive Advantage
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Edwin, UK

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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More on Competitive Advantage:
Summary
Discussion Topics
topic Quotes Competitive Advantage
topic 10 Routes to Competitive Advantage
topic Case studies in "Cost Leadership"
topic How Can Logistics Help to Achieve a Competitive Advantage?
topic Stuck in the Middle?
topic Changing from a Cost Leadership Strategy Into Differentiation
topic Competition versus Cooperation
topic Competitive Advantage or Die?
topic What is Competitive Advantage?
topic Competitive Advantage in a Monopolistic Market?
topic Health/Fitness Club Industry Analysis
topic Life Cycle Approach to Competitive Advantage
topic Focus your Efforts in Building Competitive Advantage
topic What are the Risks of a Differentiation Strategy?
topic Competitive Advantage in Tough Times
🔥 Is Superior Value to Customers a Competitive Advantage?
topic Knowledge Management is more important than CA
topic Weaknesses of Porter's Three Basic Types of Competitive Advantage
👀4 Stages of Hypercompetition
topic Why are Firms Different? Why Successful Firms Differ?
topic Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?
topic Successful Companies: Only Three Rules Needed?
topic The Role of AI in Competitive Advantage
Special Interest Group

SIG Leader

Do you know a lot about Competitive Advantage? Become our SIG Leader

Knowledge Center

Competitive Advantage
Knowledge Center



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