ANALYZING HYPER-COMPETITIVENESS IN CONTEMPORARY BUSINESS DEVELOPMENT ENVIRONMENTS: DOES HYPER-COMPETITIVENESS RENDER DETERMINING SYSTEMATIC STRATEGIC DIRECTION FOR ENTERPRISES IMPOSSIBLE?

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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...