HYPERCOMPETITIVE MARKET

INTRODUCTION
The nature of competition in todays 21 st
century in many industries is changing.
Different authors have referred this change
by a variety of terms like
hypercompetition (DAveni, 1994) coping
with turbulence (Chakravarthy, 1997) or
high velocity market (Eisenhardt & Martin
2000).
PURPOSE OF THE STUDY
To explore the concept.
To identify the drivers of hypercompetitive
market.
To study 7S strategy suggested by DAveni
to cope up with the challenges of
hypercompetitive market.
CONCEPT
DAveni (1994) defines hypercompetition as an
environment characterized by intense and rapid
competitive moves, in which competitors must move
quickly to build advantage and erode the advantage of
their rivals.
Gilligan &Wilson (2003, p.156) talks about four
driving forces of the hypercompetitive market. According
to them, the demands by customers for higher quality at
lower prices; the speed of technological change and the
information revolution; the emergence of aggressive and
well-funded competitors and changes in government
policies that have led to the collapse of traditional entry
barriers are the four driving forces that have led to
movement towards hypercompetitive market.
EXAMPLE OF HYPERCOMPETITIVE
MARKET

INDIAN
SMARTPHONE
INDUSTRY
7S STRATEGY TO COPE UP WITH THE CHALLENGES OF HYPERCOMPETITIVE
MARKET

DAveni, (1995) has suggested 7Ss

framework that managers must employ to
beat the challenges of hypercompetitive
market.
The framework is based on building
temporary advantage and disrupting the
market rather than on sustainable
advantage and finding equilibrium (Shown
in fig.1)
 FIGURE 1:
Source: DAveni, R.A. (1995). Coping with hypercompetition: utilizing the new 7Ss framework, p-49
CONCLUSION

Conventional and traditional strategies such as huge

investment budgets are no longer effective in the
industries. What they require is flexibility,
innovativeness, boldness, creativity, adaptability
and speed to face the challenges that are evolving
from this hypercompetitive market. The emergence
of global environment and innovative technology are
two main drivers of this hypercompetitive market.
So, industries should come out with disruptive
innovative, unique and stunning strategies on
continuous basis to beat the hypercompetition,
otherwise this competition will kick them out of the
market.
REFERENCES
Chakravarthy, B. (1997). A new strategy framework for coping with turbulence.
Sloan Management Review, 38(2), 69-82.
DAveni, R.A. (1994). Hypercompetition: managing the dynamics of strategic
maneuvering. New York: Free Press.
DAveni, R.A. (1995). Coping with hypercompetition: utilizing the new 7Ss
framework, Academy of Management Executive, 9 (3), 45-57.
DAveni, R.A. (1998). Waking up to the new era of hypercompetition, The
Washington Quarterly, 21 (1), 183-195.
Eisenhardt, K. & Martin, J. (2000). Dynamic capabilities: what are they? Strategic
Management Journal, 21, Special Issue, 1105-1121.
Hitt, M.A, Keats, B.W. and DeMaiie S.M. (1998). Navigating in the new
competitive landscape: Building strategic flexibility and competitive advantage in
the 21st century, Academy of Management Executive, 12(4), 23-42.
Wilson, R.M.S. & Gilligan, C (2005) Strategic Marketing Management: planning,
implementation and control. U.S.A. Burlington: Elsevier Butterworth-Heinemann
Aulakh, G. (2015, Oct 3). Why Indian Smartphone market is attracting super
competitive vendors from around the world. The Economics Times. Retrieved
from: economictimes.indiatimes.com.