Reference no: EM132325460
Think about your own organization. What does the competitive landscape look like for you? Our readings this week readings assert that the competitive landscape can be described as one in which the fundamental nature of competition is changing in a number of the world's industries. Further, the boundaries of industries are becoming blurred and more difficult to define.
A great example presented in our text is the changes in the telecommunications and telecommunication and TV industries. One thing that I realized during my tour here in Germany is the lack of a need to actually invest in traditional cable tv. I think of examples like Hulu, Netflix and the like as examples of where the model is changing.
A term often used to describe the new realities of competition is hypercompetition, a condition that results from the dynamics of strategic moves and countermoves among innovative, global firms: a condition of rapidly escalating competition that is based on price-quality positioning, efforts to create new know-how and achieve first-mover advantage, andbattles to protect or to invade established product or geographic markets.
Hitt, M.A., Ireland, R.D., &Hoskisson, R.E. (2015). Strategic management: Competitiveness & globalization (11th ed). Stamford, CT: Cengage.
1. What other industries can you think of that are in a hypercompetitive state?
2. Why?
Globalization is the increasing economic interdependence among countries as reflected in the flow of goods and services, financial capital, and knowledge across country borders. This is illustrated by the following:
• Financial capital might be obtained in one national market and used to buy raw materials in another one.
• Manufacturing equipment bought from another market produces products sold in yet another market.
• Globalization enhances the available range of opportunities for firms.
Global competition has increased performance standards in many dimensions, including quality, cost, productivity, product introduction time, and operational efficiency. Moreover, these standards are not static; they are exacting, requiring continuous improvement from a firm and its employees. Thus, companies must improve their capabilities and individual workers need to sharpen their skills. In the twenty-first century competitive landscape, only firms that meet, and perhaps exceed, global standards are likely to earn strategic competitiveness.
Hitt, M.A., Ireland, R.D., &Hoskisson, R.E. (2015). Strategic management: Competitiveness & globalization (11th ed). Stamford, CT: Cengage.
3. Thoughts?
4. Comments?