lThe Hypercompetitive Market
nContinual Innovation Drives Competition
nInnovation is Multifaceted
–Products, Processes, Strategies, Structures
nIncremental and Quantum Innovation are Commonplace
nCreative Destruction
nDisequilibrium Conditions Prevail
nPrice and Quality Play a Supporting Role
Traditional Competitive Environments
Hypercompetition : Competitive advantage is unsustainable and transitory
Innovation is multifaceted
Products: SW industry and consumer electronics
Strategy and structure: SW airlines Look at Amazon: business model where
Drugs now the follow on can have same product at a fraction of the cost
Intense competition on price and quality leads to price wars
Intense competition on timing and know-how leads to shorter product cycles.