Hypercompetition

Article summary

Hypercompetition, a term first coined in business strategy by Richard D'Aveni, describes a dynamic competitive world in which no action or advantage can be sustained for long. Hypercompetition is a key feature of the new global digital economy. Not only is there more competition, there is also tougher and smarter competition. It is a state in which the rate of change in the competitive rules of the game are in such flux that only the most adaptive, fleet, and nimble organizations will survive. Hypercompetitive markets are also characterized by a "quick-strike mentality" to disrupt, neutralize, or moot the competitive advantage of market leaders and important rivals. Often a hypercompetitive market is triggered by new technologies, new offerings, and falling entry barriers that cause market leaders to be dethroned, causing standards and rules to be in flux. This results in near chaotic competition that confuses management and causes the destruction of the core competencies of established firms. While most firms are blindsided and lose their competitive advantage, other firms find opportunities to enrich themselves through reinvention and rapid escalation of competition. The empirical evidence for the concept of hypercompetition is somewhat equivocal.…

Key claims

No claims recorded.

Discussion questions

1. Summarise the article in your own words. Which single claim would you verify first, and why?
2. Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
3. If two sources disagreed about one of these facts, what would you need in order to trust one over the other?

Bibliography

No sources recorded.