Causes of Hypercompetition

• Fragmentation of Markets

  • Consumers: More Sophisticated and Demanding
  • Flexible Manufacturing Technology
    • Mass Customization
  • Firms Outfocus Competitors by Customization
    • Sony: 200 Versions of the Walkman
    • Auto Best Sellers: Impala sold 1.5 million in 1975, Accord 0.4 million in 1991
  • Increased Competitive Pressures

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