The era where “TIME IS NO MORE MONEY BUT FAR MORE VALUABLE THAN MONEY”. Time has evolved as the 4th dimension, which is measured in “NANOSECOND”. The era where demand has surpassed supply. Competition is here replaced by “HYPER COMPETITION”.
Hypercompetition= “Hyper + Competition”
It is the environment of intense competition where competitors have to move swiftly to leverage advantage & erode the competitor’s advantages. Here continuous generating competitive advantage is a must which results in disruption of competitive equilibrium or perfect competition (Swift from perfect to monopoly). The Company cannot retain the competitive advantage as it is short lived. Thus, rather than going for sustainable competitive advantage companies opt for market disruption.
Hypercompetition says don’t just “compete plainly” but change the “plane of competition”.
Hypercompetition results from the strategic maneuvering and rapid escalation of competition based on changing dynamics of: price-quality-positioning, protect or invade established product and geographic markets, deep pockets (financial capital), and creation of even deeper pocketed alliances.
It results in dynamic strategic interaction. The mantra for success in hypercompetition is identifying opportunities for disruption & leveraging it by giving better value to stakeholder. Speed & surprise is the weapon, which led to shortening of product life cycle & an increased product design cycle.
Best examples of hypercompetition can be seen among mobile manufacturing companies, apple, Samsung or micromax each company disrupts the market by either coming up with completely new product or feature or making products cheaper enough to make it available for everyone.
7S which are essential element of Hypercompetition:-
- Stakeholder satisfaction
- Strategic soothsaying
- Shifting the rules of the market
- Simultaneous or sequential thrusts
“Sustainability” can be achieved only by aborting attempt to achieve “Sustainable Advantage”.