Hypercompetition
Release Time:
2012-11-27 17:00
Source:
Hangxing Laundry Communications
Joel Ross once said: "An organization without a strategy is like a ship without a rudder, only circling in place...", which shows the importance of strategy. Undoubtedly, the purpose of strategy is to do the right things and do things right. It is like the rudder of an enterprise, determining its direction. However, facing thousands of enterprise ships trying to sail to the same shore, how do managers steer, navigate, and defeat or surpass competitors in the competition?
Western scholars tell us: differentiation and low cost. But facing the intense competitive market, we helplessly find: the more prices drop, the lower the profits; the more competition, the more loss of competitive advantage; the more competition, the more competition for competition's sake... and differentiation requires expensive costs. All this marks that the business sea we are in has left simple competition and entered the era of "hyper-competition." If competition makes the enterprise ship set sail and move forward, then hyper-competition escorts the enterprise to reach the victorious shore.
The so-called hyper-competition should include two meanings: one is Hyper-competition, meaning that sustained competitive advantage does not exist, and enterprises that rely on unchanging strategies cannot survive. The long-term success of enterprises depends on continuously creating, destroying, and recreating short-term advantages. This is an outside-in strategic thinking, where the foundation of enterprise creation is to consider what customer needs are and how the enterprise should meet those needs, thereby continuously transforming. This is somewhat akin to the Chinese principle of "no destruction, no construction; no blockage, no flow; no stop, no go."
The other meaning of hyper-competition is to transcend competition, which is the sublimation and development of hyper-competition. Transcending competition means fully accumulating one's own competitive advantages during the hyper-competition process; when dynamically adjusting strategies, fully considering the synergy of existing competitive advantages, calmly facing environmental changes, and running quickly on one's own track. If hyper-competition is responding to competition from the customer's perspective, then transcending competition explains competition from the perspective of internal resources and is an effective supplement to hyper-competition.
In fact, many high-tech enterprises today perfectly embody the essence of hyper-competition. For example, the establishment and development of Sina Weibo is not only a perfect interpretation of domestic customer needs but also a giant leap surpassing international "social stars" like Facebook and Twitter in hyper-competition.
The domestic laundry and dyeing industry has developed to the point where entering the era of hyper-competition is inevitable. However, due to objective reasons such as industry scale and conditions, for many enterprises, thinking about survival seems more realistic than discussing development. Yet, as the saying goes, "While the old ship sinks, a thousand sails pass by; before the sick tree, ten thousand woods bloom in spring." The thinking and practice of hyper-competition will eventually be put on the agenda. We have reason to believe that honest operation and bold breakthroughs will provide enterprises in competition with an oar to cut through thorns and a soil where withered trees come back to life.
Excerpted from "Hangxing Laundry Newsletter," slightly edited.
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