Contact Information
- 15800 Progress, Mora, MN, 55051
- info@preessays.com
- +1-786-220-3368
Browse our Free Essay examples and check out our Writing tools to get your assignments done.
ANALYZING
HYPER-COMPETITIVENESS IN CONTEMPORARY BUSINESS DEVELOPMENT ENVIRONMENTS: DOES
HYPER-COMPETITIVENESS RENDER DETERMINING SYSTEMATIC STRATEGIC DIRECTION FOR
ENTERPRISES IMPOSSIBLE?
First Name and Last Name
Class
Date
1.0
Introduction to the study
Presently,
contemporary business development environments are gradually experiencing an
increased level of competitiveness and dynamism. Majority of the
technology-based enterprises are undergoing rapid changes hence making it a requirement
for such entities to create new concepts as a way of coping up with the changes[1]. On previous occasions,
business enterprises would maximize their levels of competitive advantage to
gain market control something that proved to be sustainable for a given period.
Nonetheless, this is no longer the case due to the reality of hyper-competition
which can be described as a new era of competition in the business world. Various
business experts define hyper-competition as tactics used by organizations to
upset the competitive advantage held by direct rivals[2]. In the technology-based
industry, businesses try to gain competitive advantage through price
adjustments complemented by the mastery of financial independence, the decline
of boundaries, customer changes and integration of technology and innovations.
In the
journal Revealing
Your Hand: Caveats in Implementing Digital Business Strategy by Varun
and Rajiv (2013), it was concluded that hyper-competition renders the
determination of systematic strategic direction in enterprises impossible[3]. Due to the availability
of hyper-competitiveness business tend to focus on understanding how normal
operations are affected by the rapid changes in the modern business
environment. These circumstances force business executives in the
technology-based industry to come up with measures that are tailored to withstand
such environmental changes.
Hyper-competition affects the performance of businesses as well as the
process of decision making considering it has turned the world into one level
field. This phenomenon is termed as globalization. The technology-based enterprises are
experiencing significant changes regarding the cultural, social and economic
business environments thus making it impossible to determine the systematic
strategic direction of a business. Hyper-competition depends on technology and innovations
considering they are essential elements in the disruption of competitive
advantage held by market leaders.
The
introduction of more efficient products in the technology-based industry has
played a significant role in creating disruptions to the operations of market
leaders. This form of innovation can be likened to the changes that were
experienced in the beverage industry due to the introduction of energy drinks. This
form of innovation on the long haul proved to be a success as it resulted in competitors
coming up with new concepts and lines of energy drinks. Therefore, these kinds
of changes brought about by the reality of hyper-competition make it had for
business executives to determine the systematic strategic direction of an
enterprise. Besides, hyper-competitiveness results in business experiencing
customer changes, something that business executives cannot predict and occurs
sporadically[4].
Customer changes possess the consumers to determine dramatic effects on market
leaders in the technology-based industry considering the success of a market.
The
purchases made by consumers determine the success of an organization that
specializes in the production of technology-based products[5]. For example, consumers may purchase wireless
charging systems for one year and then decide to acquire wire-based charging
systems for the following year. This situation underlines the vulnerability of
an organization to the changes in the hyper-competitive markets. Due to
hyper-competition business executives in the technology-based enterprises are
forced to assume that they operate in a business environment that is not
confined to any given boundaries[6]. This situation has
resulted in the elimination of boundary to entry thus presently it is quite
easy for an outside business to invest in specific markets. The existence of
hyper-competition has complicated business operations because for an enterprise
to dominate a given industry, and then it is required to attain financial
independence. The elimination of boundaries to entry jeopardizes the chances of
a business controlling a particular industry. This research proposal will focus
on the investigation of how hyper-competitiveness renders the determination of systematic
strategic direction in enterprises impossible.
2.0 Statement of the problem
The
technology-based enterprises have been drastically affected by
hyper-competitiveness. It is evident that competition has its place in the
modern day business environment where it influences activities and day to day
operations[7]. Competition is the
pinnacle of what defines the business world. For that reason, these
circumstances bring about the question of how businesses are affected by the
reality of hyper-competition. Today, business executives are facing multiple
struggles that are arising from the existence of competition within the global business
arena. This level of competition has negatively affected the maintenance of
strategic development within technology-based enterprises. To further add on
that an investigation conducted by Mark (2011) concluded that hyper-competition
significantly harms business enterprises through various price factors,
production and labor costs[8]. Price factors ensure that
business remains operational; therefore it is upon the management of business
enterprises to determine how important pricing is to the achievement of
success.
On a global stage, the technology-based enterprises have gradually experienced a rapid increase in competition; as a result, they have been exposed to poor market performance and decision making. Hyper-competition has resulted in businesses experiencing price fluctuation something that has drastically affected the costs of operation[9]. Small businesses that have access to limited resources have not been able to keep up...