Hypercompetition

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Information about Hypercompetition
Technology

Published on February 28, 2014

Author: jordhy

Source: slideshare.net

Description

Hypercompetition in the technology industry. How and why technology companies embrace rapid product iteration plans to win bigger market share.

Hypercompetitive Markets

Hypercompetition represents a state of competition with rapidly escalating levels of competition and reduced periods of competitive advantage for firms.* *Organization Science | March 1, 2000

Introduction

Apple How does Apple, the #1 innovative company in the world, innovate and create game-changing innovations such as the iPod, iTunes, iPhone, iPad and more? What is Apple's secret recipe for innovation success? Facts: Secretive company Table Market Leader Multiple Moats Diversified Global Player

Amazon Amazon.com, Inc. (AMZN), is a leading global Internet company and one of the most trafficked Internet retail destinations worldwide. How can they take market share from Apple? Facts: Huge partner network Table Market Late Comer Moats in Different Industries Diversified Global Player

Market Overview

Market Overview – Models

Market Overview – Price Wars

Apple vs Amazon Apple Amazon Generally competes by differentiation Generally competes on price/long term view Closed ecosystem Open ecosystem Huge Product Legacy Open Possibilities What would you do?

Recent News 1 • Amazon to Reduce Kindle Fire Manufacturing Orders by 50% for Q1 2012 • http://www.itproportal.com/2012/01/23/amazon-reduce- kindle-fire-manufacturing-orders/ • January 23

Recent News 2 • Samsung Announces a 7.7 inch Tablet • http://news.consumerreports.org/electronics/2012/01/ces- 2012-amoled-comes-to-samsung-tablet.html • January 9

Windows 8 Tables….

Apple vs Amazon vs Samsung vs…

Multi-staged Competition? • Brazil Approves Tax Incentives to Begin iPad Production as Apple Targets its Next Major Market

Hypercompetitive Environments PROS • Fast-paced • Everything is temporary CONS • Aggressive • Moats might not last

Takeaways

Takeaways • In hypercompetitive environments competition is fast • Usually competitors are forced to compete by using satellite businesses/advantages • Secrecy, moats and execution speed play a key role in the competitive dynamics • Segmentation of competitors might help in getting a clearer view • The first question to ask might be: who is this player competing against?

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