The Competitive Landscape

• The fundamental nature of competition in many of the world’s industries is changing.
• Although financial capital is no longer scarce due to the deep recession, markets are increasingly volatile.
• the pace of change is relentless ("constant") and ever-increasing.
• Even determining the boundaries of an industry has become challenging.
• Conventional sources of competitive advantage such as economies of scale and huge advertising budgets are not as effective as they once were (e.g., due to social media advertising) in terms of helping firms earn above- average returns.
• traditional managerial mind-set is unlikely to lead a firm to strategic competitiveness (eg: carrot and stick approach)
• Managers must adopt a new mindset that values flexibility, speed, innovation, integration, and the challenges that evolve from constantly changing conditions.
• The conditions of the competitive landscape result in a perilous business world, one in which the investments that are required to compete on a global scale are enormous and the consequences of failure are severe.
• Effective use of the strategic management process reduces the likelihood of failure for firms as they encounter the conditions of today’s competitive landscape.
• describes competition that is excessive such that it creates inherent instability and necessitates constant disruptive change for firms in the competitive landscape

  hypercompetition
• Hypercompetition results from the dynamics of strategic maneuvering among global and innovative combatants.
• It is a condition of rapidly escalating competition based on price-quality positioning, competition to create new know-how and establish first-mover advantage, and competition to protect or invade established product or geographic markets.

  hypercompetition
• In a hypercompetitive market, firms are aggressive to challenge their competitors in the hopes of improving their competitive position and ultimately their performance.