Hypercompetitive Markets


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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


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?


Secretive companyTable Market LeaderMultiple MoatsDiversified 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?


Huge partner networkTable Market Late ComerMoats in Different IndustriesDiversified Global Player

Market Overview

Market Overview – Models

Market Overview – Price Wars

Apple vs AmazonApple 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?

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

• Fast-paced• Everything is



• Aggressive• Moats might not



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?