Hypercompetitive markets are those with too many sellers and too many buyers. How do you thrive when any advantage you gain is so hard to sustain?
Common responses to hyper-competition are reactive: Price wars. Faster pace. Differentiation. Raise the entry barriers. Minimize the advantage of the competition. Whereas proactive approaches sustain us in a hypercompetitive market. Accept and expect competition. Whatever can be copied, will be copied. Create something that cannot be copied: Customer experience and brand are much harder to duplicate. Competitive strategy and business strategy are not the same things.
Do not take the competition to the extreme. People who are looking to invest in your market will shy away from you. Don’t confuse market disruption with de-focusing on your primary business. Understand what makes you unique and leverage it, without changing your values or straying from your goals.
In a hypercompetitive market, remember the pie will be sliced. You won’t get the whole pie.
Recognize that profitability depends on the market segment. Target the segment where you have the most market. Every market changes with time. What was profitable once, won’t always be profitable.
You don’t have an unlimited budget--and even if you did, if you don’t spend it wisely you won’t succeed. Pricing is key. Price wars send a message to the competition; not to the consumers. Sustain for as long as you can. Don’t sink. You can outlive the competition.
In a hypercompetitive market, invest your budget and capital into building your brand. Budget for changes and upgrades. If you don’t, the competition will.
Whenever you enter a new market, you’ll have to discover how to cater to the needs of that particular market.
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