Saturday 30 July 2011

Hypercompetition and business ecosystem: a comparison

Based on my review of D'Aveni's work on hypercompetition and Moor's work on business ecosystem, I made the following observations:

a. Hypercompetition takes up a more competitve strategy mode of thinking while business ecosystem adopts a more collaborative strategy mode of thinking
b. Both hypercompetition and business ecosystem provide advice on how to cope with constant market disruptions, especially arising from innovation efforts made by competitors.
c. Hypercompetition thinking focuses on the extended enterprise level while business ecosystem thinking covers a broader set of stakeholder in strategy management.
d. When applying business ecosystem theory in case study, it is possible to also consider certain aspects of hypercompetition tactics when evaluating as well as formulating competitive strategy of a specific business ecosystem vis-a-vis a competing business ecosystem.

The following 2 diagram depict these ideas further:




For details on these two theories, pls refer to the relevant literature:
  • D'Aveni (1995) "Coping with hypercompetition: Utilizing the new 7S's framework", Academy of Management Executive, Vol. 9(3), pp. 45-60.
  • Moore, J.F. (1996) The Death of Competition, HarperBusiness

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