Business Policy

Often a characteristic of new markets and industries, hypercompetition occurs when technologies or offerings are so new that standards and rules are in flux, resulting in competitive advantages that cannot be sustained. In response, companies must constantly compete in price or quality, or innovate in supply chain management, new value creation, or have enough financial capital to outlast other competitors.

As stated in the above, Hypercompetition mostly occurs in those industries for which is wide range of competitors, short product life cycle, high technologies, global market base or customers oriented. Company must keep develop the new products or services in order to fulfill changing customer’s behaviours.

Mobile phone is the most common Hypercompetitive industries. People use mobile phone not only for the communication, but also as a part of the Fashion, Internet access, watching movie and listening music, photo taking, etc. The product life cycle of mobile has become shorter and the price is cheaper than before. Because there have many brands exist in the industries, all of the manufactures have to develop the new product with unique function together with acceptable price to fulfill customer expectation.

What this new competition is often able to exploit is the fact that buying behavior isn’t just about people and income, it’s also about how dissatisfied consumers are with present alternatives. Choosing among multiple options is always based on differences, implicit or explicit, so company ought to differentiate in order to give the customer a reason to choice their product or service.

However, Hypercompetition is not relevant to those industries is high barrier of entry, monopoly or niche market. Because there are only a few competitor exists, they have their own loyalty customers. Therefore, they needn’t to keep changing business strategy to get the customer attention.

Because most of the industries are customer-oriented, they have to...