what is new era marketing amidst hyper-competition?
Answers
Explanation:
From microchips to corn chips, software to soft drinks, and pack-aged goods to package delivery services, executives have watched the in-tensity and type of competition in their industries shift during the last fewyears. Industries have changed from slow moving, stable oligopolies to en-vironments, characterized by intense and rapid competitive moves, inwhich competitors strike quickly with unexpected, unconventional meansof competing. They now confront “hypercompetitors” who continuouslygenerate new competitive advantages that destroy, make obsolete, or neu-tralize the industry leader’s advantages, leaving the industry in disequilib-rium and disarray.The problem of hypercompetitive markets has spread to the airline, phar-maceutical, financial services, health care, consumer electronics, telecom-munications, broadcasting, auditing, automotive, and computer industries,among many others. As Jack Welch, chief executive officer of General Elec-tric, said in 1992 in describing future competitive practices, “It’s going to bebrutal.”1The new realities of this era shock even the most seasoned executives.For decades firms sought to sustain a competitive advantage, seen as the“holy grail” of strategy, but they find this impossible in hypercompetitive en-vironments. The frequent rise of rapid imitators and leapfrog strategies hasdevastated long-time players.In the past, firms would often try to increase profitability by legally re-straining the level of competition in an industry. They avoided price wars,segmented the market to avoid head-to-head competition, and tried to keepRichard A. D’AveniWaking Up to the New Eraof Hypercompetition