Suggested Reading

by Richard D’Aveni

In “Hypercompetition,” Richard D’Aveni contends that competitive moves and countermoves escalate so quickly today that the traditional sources of competitive advantage can no longer be sustained. To compete in an environment in which advantages are rapidly created or eroded, D’Aveni argues that a company must fundamentally shift its strategic focus. He constructs an operational model that shows how firms move up “escalation ladders” as advantage is continually created, eroded, destroyed, and recreated through strategic maneuvering in four arenas of competition: (1) cost-quality advantages, (2) timing and know-how advantages, (3) strongholds using entry barriers and, (4) deep pockets. Using examples from hypercompetitive industries, D’Avenie demonstrates how hypercompetitive firms succeed in dynamic markets by disrupting the status quo and creating a continuous series of temporary advantages. “Hypercompetition” is an operating manual of strategy and tactics for leaders of companies in hypercompetitive industries.