Palestra sobre como vencer numa era de Hyper Competição realizada por Richard D' Aveni (Professor na Tuck School of Business at Dartmouth College) na ExpoGestão 2004.

1. WINNING IN THE AGE OF
HYPERCOMPETITION
Strategies for Revolutionizing Markets
ExpoGestao
Joinville, Brazil
June 4, 2004
Professor Richard D'Aveni
Tuck School of Business at Dartmouth College
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

2. Goals
Leading in Times of Rapid Disruption
To Crystallize Our Intuition About
Market Dynamics
To Examine How Traditional Strategic
Thinking Fails in a Dynamic Market
To Suggest Ways to Understand and
Compete in the Dynamic World of the
Future
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

3. Traditional Sustainable Advantage
Period
Competitive of Advantage
Advantage Launch Slow Counter
Attack
Time
Hypercompetition and Unsustainable Advantage
Short Period
Competitive of Advantage
Advantage Launch
Rapid Counter
Attack
Time
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

4. Old Models Don’t Work
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

5. Agenda
Topic I - What is
Hypercompetition?
Topic II - Unsustainable Advantage
in Four Arenas of
Competition
Topic III - Creative Disruption and
Shifting the Rules of the
Game
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

6. The Old Rules:Win By Reducing Rivalry
Build Non-Competitive Industry Structures
• Barriers to Entry
• Exclude Competitors
• Reduce Rivalry
• Avoid Price Wars
• Strength Against Weakness Strong
Defensive
• Proprietary Technology
Walls
• Use the Power of Monopoly
• Over Buyers
• Over Suppliers
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

7. The Old Rules:Win By Reducing Rivalry
Avoid Competitive Behaviors
• Oligopolistic Bargains
• Signaling Cooperation
• Avoiding Price Wars
• Avoid Frontal Attacks
• Strength against Weakness
• Retreat to Low Rivalry Markets
• Focus on Hard-to-Replicate Niches
• Service and Relationships
• Proprietary Technologies
• Brand Names and Premium Images
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

8. What is
Hypercompetition?
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

9. A New Type of Competition
Impact on
Level Advantage
Customers
Monopoly Absolute Negative
Oligopoly Sustainable Negative
Hypercompetition Temporary Positive
Perfect None Positive
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

10. Embracing The Hypercompetitive Shift
N = 200
Industries
Industry
Average 1980’s - 1990’s
Stock
Performance
1950’s - 1970’s
Industry Rivalry
Drive Growth to Create Shareholder Value
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

11. Capitalizing on the Four Driving
Forces of Hypercompetition
Fragmenting and Escalating
Customer Demands
Falling
Entry
n Barriers
itio
pet
com
per
Accelerating Hy
Technological
Change
Rising Deep Pockets
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

12. Strategic Dominance
Long-Term Advantage
Advantage
Time
A Series of Advantages
Advantage
Time
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

13. Pre-Plan Your Disruption Sequence
Create a Value and Competence Migration Path
Property & Casualty Insurance Industry
QUALITY FUTURE
Financial Specialty
Service/ Value
Strength/ Value Brand
Products Pricing
Reliability Propositions
KNOW-
FUTURE
HOW/ASSETS
Economies Link Distribution,
Balance
of Scale in Marketing Direct
Sheet Agents
Operations/ with Selling, and
Management
Overhead Underwriting Internet
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

14. Do Not Wait Until It Is Too Late
Advantage
Four Virtually Time
Simultaneous Doing
Organizations
Setting Up
Set Your Time Planning
Pacing Interval
Envisioning
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

15. Smart Bombing The Competition ®
Revolutionizing Your Mindset
and Your Market
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

16. Smart Bombing ®
The Disruption of the Brokerage Industry
Round 1: Challenging the Downstream End of the Brokerage Value Added Chain
Largest
Broker Tailored
Merrill’s
Strengths Network Advice
Product Research/ Customer
Development Analysis Marketing Distribution Service Account
Reports
Schwab’s Lower cost and 24-hr.
Disruption service via
electronic/telephone
service
[No Commissions]
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

17. Smart Bombing ®
The Disruption of the Brokerage Industry (cont.)
Round 2: Challenging the Upstream End of the Brokerage Value Added Chain
Invention of
CMA/Mutual Securities Merrill’s
Funds Analysis Strengths
Customer
Product Research/
Marketing Distribution Service Account
Development Analysis
Reports
Schwab’s
One Source provides
many new products Disruption
and access to research
by many funds
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

18. Smart Bombing ®
The Disruption of the Brokerage Industry (cont.)
Round 3: Rechallenging the Downstream End of the Brokerage Value Added Chain
Largest
Merrill’s Broker Tailored
Strengths Network Advice
Product Research/ Customer
Development Analysis Marketing Distribution Service Account
Reports
Schwab’s
Schwab Advisor Network &
Disruption Schwab OnLine
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

19. Smart Bombing ®
Round 4: The Empire Strikes Back
New Comp System
[No commission
paid on small
account trading]
Major Cost My
Merrill Moves-- Cut Backs Retirement Financial
(overseas Planning Picture
Dropping & U.S.) Network Online
Megatonage
Product Research/ Customer
Development Analysis Marketing Distribution Service Account
Reports
Schwab Schwab Upscale Major U.S. Trust
Imitates Full Direct Detail Rebranding Employee Computerized
Line Brokers (In-depth Reductions Stock Advice
Mutual Fund and Portfolio
Insights) Planning &
Wireless Trading
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

20. Smart Bombing ®
Round 5: The Guerilla Strikes Back
Research
CMA Funds Influenced IPOs Given
Merrill Used For To IB Client
by IB
M&A Loans Executives
Clients
Product Research/ Customer
Development Analysis Marketing Distribution Service Account
Reports
Schwab
Challenges
Conflicts
of Interest Advertising De-Legitimizing Investment Banks—
Biased Toward Investment Banking Clients Over Brokerage Clients
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

21. Use Creative Disruption
Shifting the Rules of the Game
Redefine Quality and the Value
Proposition
Redefine Critical Know How and the
Value Chain Configuration
Redefine the Boundaries of Your
Stronghold and Circumvent Barriers to
Entry
Redefine the Level of Deep Pockets Used
-- Brains versus Brawn or vice versa
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

22. The Goals of the Struggle
• Out maneuver your opponent by
serving your customer better
• Compete to neutralize or obsolete
the opponent’s advantage at
serving the customer
• Not to sustain your advantage
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

23. Chivalry is Dead
The New Golden Rule
• Do Unto Yourself Before
Others Do Unto You
The New Goals
• Disrupt the Status
Quo
• Reshape and
Reinvent the Industry
© Copyright by Richard A. D’Aveni 2004. All rights reserved.

24. Only Two Types of Firms
The The
Disruptive Dead
© Copyright by Richard A. D’Aveni 2004. All rights reserved.