JAYANT K.

OKE

HYPER-COMPETITION

THE BUSINESS ENVIRONMENT.

AS WE ALL KNOW, THE BUSINESS ENVIRONMENT TODAY

IS: EXTREMELY COMPETITIVE THE COMPETITION IS RUTHLESS & RELENTLESS IT IS ALSO NOT JUST LOCAL BUT GLOBAL

THE BUSINESS ENVIRONMENT

IN SUCH AN ENVIRONMENT, BUSINESS ORGANISATIONS EARLIER

ENDEAVOURED TO BUILD & SUSTAIN COMPETITIVE ADVANTAGE THAT WAS DIFFICULT TO IMITATE.

 SUCH COMPETITIVE ADVANTAGE,

HOWEVER, PROVED TO BE TEMPORARY AS COMPETITIVE ADVANTAGE WAS GAINED BECAUSE OF INNOVATION BUT LOST BECAUSE OF IMITATION

 NOW, HOWEVER, THE BUSINESS ENVIRONMENT HAS

BECOME HYPER-COMPETITIVE, WHERE MANY ORGANISATIONS, BOTH IN PUBLIC & PRIVATE SECTOR, FACE TURBULENT, FAST-CHANGING, UNCERTAIN BUSINESS ENVIRONMENT.

WHAT IS HYPER-COMPETITION?
HYPER-COMPETITION OCCURS WHERE THE FREQUENCY, BOLDNESS &

AGGRESSIVENESS OF DYNAMIC MOVEMENTS BY COMPETITORS RESULTS IN CREATING CONDITIONS OF CONSTANT CHANGE & DISEQUILIBRIUM.

HYPER-COMPETITION
HYPER-COMPETITION REQUIRES ORGANISATIONS TO ACKNOWLEDGE THAT

COMPETITIVE ADVANTAGES WILL BE TEMPORARY. INDEED, HYPER-COMPETITION IS ABOUT DISRUPTING THE STATUS-QUO SO THAT NO ONE IS ABLE TO SUSTAIN LONG-TERM ADVANTAGE ON ANY GIVEN BASIS. SO, THE LONGER TERM ADVANTAGE IS GAINED THROUGH A SEQUENCE OF SHORT-LIVED MOVES.

HOW TO FACE HYPER-COMPETITION?

AS HYPER-COMPETITION IS A REALITY, THERE IS IMPERATIVE NEED TO COME OUT

WITH APPROPRIATE RESPONSES. BUSINESS ORGANISATIONS WOULD HAVE TO ACQUIRE ABILITIES AS REGARDS: CHANGE SPEED FLEXIBILITY INNOVATION DISRUPTION OF MARKETS

COMPETITIVE STRATEGIES IN HYPER-COMPETITION

THE BUSINESS ORGANISATIONS CAN

ADOPT THE FOLLOWING BROAD STRATEGIES: REPOSITIONING OVERCOMING COMPETITORS BARRIERS OVERCOMING COMPETITORS MARKET-BASED MOVES COMPETING SUCCESSFULLY

RE-POSITIONING
AN ORGANISATION POSITIONED AT POSITION 1 OR 2 MAY ATTEMPT TO STAVE OFF

COMPETITION THROUGH MOBILISING SOME DEGREE OF DIFFERENTIATION WITHOUT AN INCREASE IN PRICE AS THIS IS IMITATED, NEW SOURCES OF DIFFERENTIATION WILL NEED TO BE SOUGHT THIS WOULD NECESSITATE AGILITY

OVERCOMING COMPETITORS BARRIERS

SHORTER LIFE CYCLES UNDERMINE STRONGHOLDS COUNTER DEEP POCKET ADVANTAGES

SHORTER LIFE CYCLES

TODAY, THE TECHNOLOGICAL ADVANCES ARE RAPID (RE-INVENTING YOURSELF) AS SUCH, KNOWLEDGE / TECHNOLOGY IS GETTING OBSOLETE / OUT-DATED RAPIDLY TECHNOLOGICAL ADVANTAGES WOULD HENCE BE SHORT-LIVED PRODUCT LIFE CYCLE WOULD BE , BY FORCE, SHORTER. HENCE, SUCH ADVANTAGE MAY NOT LAST LONG

UNDERMINE STRONGHOLDS
COMPETITORS MAY TRY TO DOMINATE

PARTICULAR AREAS / SEGMENTS SUCH STRONG-HOLDS CAN BE UNDERMINED (OUTSOURCING LOCATING PLANTS AT A PARTICULAR LOCATION DISTRIBUTION CHANNELS etc.)

COUNTER DEEP POCKET ADVANTAGES

CERTAIN COMPETITORS MAY HAVE HUGE

RESOURCES (DEEP POCKETS) AT THEIR COMMAND, ACROSS THE GLOBE SMALLER PLAYERS NEED TO FIND WAYS TO AVOID DIRECT COMPETITION BY: FOCUSSING ON NICHE MARKETS MERGING OR BUILDING ALLIANCES

OVERCOMING COMPETITORS MARKET-BASED MOVES

BLOCK FIRST MOVERS ADVANTAGE IMITATE MARKET / PRODUCT MOVES

BLOCK FIRST MOVERS ADVANTAGE

ORGANISATIONS MUST NOT ALLOW A

COMPETITOR TO ESTABLISH A DOMINANT PRODUCT / DESIGN BEFORE THEY MAKE A RESPONSE. (SANTRO & WAGON R) ORGANISATIONS, THEREFORE, MAY HAVE TO CONSIDER DIFFERENT STRATEGIES TO COUNTER THE FIRST MOVERS ADVANTAGE.

BLOCK FIRST MOVERS ADVANTAGE: COUNTER-STRATEGIES

LAUNCHING A PRODUCT WITH ENHANCED FEATURES, RATHER THAN LAUNCHING

IMITATION PRODUCT. ATTACK A PARTICULAR / SPECIFIC SEGMENT, ERODING THE MARKET POWER OF FIRST MOVER. FOLLOW A NO FRILLS STRATEGY TO CAPTURE DOWN-MARKET , BEFORE MOVING INTO THE MAIN MARKET OF THE FIRST MOVER. (AUTOMOBILES/ CELL PHONES/WHITE GOODS)

IMITATE MARKET / PRODUCT MOVES

SUCH MOVES COULD BE DIRECTLY

ATTACKING THE MARKETING STRATEGIES RATHER THAN IMITATING THE PRODUCT. SUCH MOVES MAY BE RELATIVELY EASILY IMITATED (SACHE MARKETING). THE COMPETITOR IS THEN FACED WITH EXACTLY THE SAME PROBLEMS OF SUSTAINING ADVANTAGE AS IT WOULD IN ITS ORIGINAL PRODUCT / MARKET DOMAIN.

COMPETING SUCCESSFULLY
THIS STRATEGY WOULD ENCOMPASS: PRE-EMPTING COMPETITORS NOT ATTACKING COMPETITORS

WEAKNESS DISRUPTING THE MARKET BEING UNPREDICTABLE MISLEADING COMPETITOR A SERIES OF SMALL MOVES

PRE-EMPTING COMPETITORS
COMPETITION HAS TO BE PRE-EMPTED BY PRE-EMPTING IMITATION SUSTAINING OLD ADVANTAGE CAN BE A

DISTRACTION FROM DEVELOPING NEW ADVANTAGES AN ORGANISATION MUST BE ABLE TO CANNIBALISE ITS OWN SUCCESS TO BE MORE SUCCESSFUL ! e.g. KILLING OWN PRODUCT (SHORTER PLC) LAUNCHING NEW PRODUCT WITH ENHANCED FEATURES)

NOT ATTACKING COMPETITORS WEAKNESS

ATTACKING COMPETITORS WEAKNESS

WOULD MAKE THEM AWARE OF IT, & PERHAPS DEVELOP STRATEGIES FOR IMPROVING UPON THE SAME ! DONT TROUBLE TROUBLE, UNLESS TROUBLE TROUBLES YOU! LET COMPETITION BE BLISSFULLY IGNORANT ABOUT THEIR WEAKNESSES, SO THAT YOU CAN EXPLOIT THEM TO YOUR ADVANTAGE !

DISRUPTING THE MARKET

DISRUPTION OF THE STATUS QUO IS

STRATEGIC BEHAVIOUR, NOT MISCHIEF! INDEED, THE ABILITY TO CONSTANTLY BREAK THE MOULD COULD BE A CORE COMPETENCE BLUE OCEAN STRATEGY : MAKE YOUR COMPETITION REDUNDANT

BEING UNPREDICTABLE
PREDICTABILITY IS DANGEROUS AS

COMPETITORS CAN PREDICT YOUR NEXT COMPETITIVE MOVES / PATTERN & QUICKLY LEARN TO PRE-EMPT / IMITATE OR OUTFLANK YOU. HENCE, SURPRISE, UNPREDICTABILITY & APPARENT IRRATIONALITY MAY BE IMPORTANT (CREATIVITY : ABILITY TO MAKE SENSE OUT OF APPARENT NON-SENSE)

BEING UNPREDICTABLE
MANAGERS MUST LEARN WAYS OF

APPEARING TO BE UNPREDICTABLE TO THE EXTERNAL WORLD WHILE INTERNALLY WORKING THE STRATEGIES THOROUGHLY / PROFESSIONALLY

MISLEADING COMPETITORS
MISLEADING SIGNALS OF STRATEGIC

INTENT MAY BE USEFUL / HELPFUL USING GAME THEORY, THE ORGANISATION MAY SIGNAL MOVES WHICH COMPETITORS MAY EXPECT BUT WHICH ARE NOT THE SURPRISE MOVES THAT ACTUALLY HAPPEN! (SBI / CANARA BANK KATRAJ STRATEGY)

A SERIES OF SMALL MOVES

A SERIES OF SMALLER MOVES MAY BE

MORE EFFECTIVE THAN A BIGGER ONE-OFF CHANGE THIS MAKES THE LONGER-TERM DIRECTION / MOVES LESS DISCERNIBLE BY / TO COMPETITORS SMALLER MOVES CREATE / PROVIDE MORE FLEXIBILITY & ENABLE TO GAIN A SERIES OF TEMPORARY / SHORT TERM ADVANTAGES.

THANK YOU