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Hypercompetion Strategy

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Hypercompetition is an environment characterized by intense and rapid competitive moves, in which competitors must move quickly to build advantages and erode the advantages of their rivals.

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Hypercompetition speeds up the dynamic strategic interactions among competitors.

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Hypercompetitive behavior is the process of continuously generating new competitive advantages and destroying, obsoleting, or neutralizing the opponent's competitive advantage

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……..thereby creating disequilibrium, destroying perfect competition, and disrupting the status quo of the marketplace.

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Strategy in the Hypercompetion Era
• Vision for Disruption • Capabilities for Disruption • Tactics for Disruption

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Vision for Disruption
• Envisioning disruptions that create Superior Stakeholder Satisfaction • Using Strategic Soothsaying as a means of seeing and creating opportunities for disruption

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Capabilities for Disruption
• Building the capability for Speed • Creating the capability to Surprise opponents

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Tactics for Disruption
• Shifting the Rules of Competition • Using Signals to influence future dynamic strategic interaction • Executing Simultaneous and Sequential Strategic Thrusts

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Vision for Disruption
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Superior Stakeholder Satisfaction
Superior stakeholder satisfaction is the key to winning each dynamic strategic interaction with competitors.

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Superior Stakeholder Satisfaction
The process of developing new advantages or undermining those of competitors begins with an understanding of how to satisfy customers.

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Superior Stakeholder Satisfaction
By discovering ways to satisfy customers, the company can identify its next moves to seize the initiative.

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Superior Stakeholder Satisfaction
But customers are not the only stakeholders that must be satisfied. By empowering employees, the company employees can gain the internal motivation and vision needed to carry out those moves.

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Strategic Soothsaying
Strategic soothsaying is a process of seeking out new knowledge necessary for predicting or even creating new temporary windows of opportunity that competitors will eventually enter but that are not now served by anyone else.
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Strategic Soothsaying
These opportunities can be found by creatively combining products, understanding trends in the business environment that will open up new opportunities, and serving new customer markets with the existing capabilities of the firm.
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Capabilities for Disruption
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Speed and Surprise
Speed and surprise are needed to take advantage of opportunities, to move quickly against competitors, or to respond to a competitor's attack.

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Speed and Surprise
Speed is also a key part of competitive advantage, because it enhances the ability to serve customers and to choose the moment in time that the firm will enter the market (e.g., as a first mover or a fast follower).
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Speed and Surprise
Surprise is also crucial to success. The longer the first mover can delay entrance by competitors into the market by stunning them with a surprise attack, the more time there is to create a strong position and make gains before the competition responds.
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Tactics for Disruption
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Shifting the Rules of Competition
Shifting the rules of competition is concerned with actions that redefine the battlefield. By shifting the rules of the game, the company creates new opportunities to satisfy customers.

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Shifting the Rules of Competition
The company finds new ways of satisfying customers that transform the industry, such as adapting the industry personal computer to serve the mainframe computing industry or inventing the disposable razor to transform the market for standard razors.

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Signals
Signals — verbal announcements of strategic intent — are important preludes to more powerful actions. Signals can stall the actions of competitors or create uncertainty that erodes their will to defend against attacks.

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Signals
They can preannounce or fake aggressive offensive moves that alter the behavior of competitors. Thus, signals can be used to disrupt the status quo and interactions between companies and thereby create an advantage.

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Simultaneous and sequential strategic thrusts
Simultaneous and sequential strategic thrusts are the use of a series of actions designed to stun or confuse competitors, disrupting the status quo competitors to create new advantages or erode those of competitors.

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Simultaneous and sequential strategic thrusts
Whereas traditional strategic actions have been treated one at a time, actions in hypercompetition are used in combinations that are difficult to unravel and difficult to defend against.

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Simultaneous and sequential strategic thrusts
By manipulating competitors' reactions using a series of simultaneous or sequential actions, they result in the actions initiating company's advantage.

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Source of Reference: Richard D’Aveni, Hypercompetition : Managing the Dynamics of Strategic Maneuvering, Free Press.

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