Hyper competition is when there is the inflow of new technologies in the market that it forces a greater inflow of standards and rules. In order to keep up with hyper competition companies and firms have to compete in terms of quality and price and need to keep offering innovations in their existing products. Hyper competition is definitely indicative as it reveals the capabilities of particular industries and shows the maximum efforts that they can put in staying in the market for as long as its possible. It indicates that a particular industry is strong enough to deal with competitive advantage or whether it does not come up to the mark of being a strong industry.
Hyper competition impacts an organisations pursuit of sustainable competitive advantage negatively because no firm or organisation can sustain competitive advantage in hyper competition. Each firm tries to compete with the other firms by copying their practices but even though they gain efficiency, the do not become more profitable. As its name implies, competition becomes very high and in some situations, in the need to compete and stay in the market, firms tend to destroy their image and at times compromise on quality and thus are forced to leave the market. Hyper competition has always been around and is simply a function of a fact that we live in a world that is always changing. Technology is always changing and being replaced by new and improved technology, new offerings are always entering the market every day, so yes hyper competition in one way or the other is an excuse for managers who cannot cope up with the changing environment. A firm should always try and maintain favourable competitive advantage over other firms and managers should always put in their best efforts to come up with new plans and strategies or new innovation for their productive in order to be at the top.
In order to cope with hyper competition markets, strategies can be used such as marketing strategies can be used to keep improvising and innovating the existing products so that a firm always has competitive advantage over other firms and is always attracting new customers, it could use promotion strategies that is, it could use above the line promotion strategies to promote its product and to make it aware to more people who don’t know about the products, they advertising strategies to make the product more appealing to the consumers so as to increase its sales and other such strategies to keep attracting new customers and to keep growing relationships with the ones that already exist. Lastly it is proved that hyper competition impacts the sustainability of a business in competitive advantage negatively.
Authors Websites : https://www.bestassignmentservice.com/assignment-help-websites/