Hyper competition in strategic marketing

INSTRUCTIONS: Please RESPOND to this answer from the Point of view as a student. Use credible sources and respond as if you are a manager of a marketing agency. Tell this student what your marketing agency would think of each of these answers from a Management perspective in about 4-5 paragraphs:

MT3 - Some aspects of the Strategies for Turbulent/Hyper-Competitive Markets to be considered are: What Defensive Strategies might industry incumbents pursue in turbulent and hypercompetitive markets? How can the use of Real-Options Analysis help in putting a Value on Staging and Pacing?

When companies compete in turbulent and hypercompetitive environments, they have to be very careful and plan their next moves using the Strategy Diamond. The companies should test and practice various options before actually deciding the final plan. According to Carpenter and Sanders (2008) “In one study of several firms competing on the edge of chaos, researchers encountered the following three levels of activity.

1. 1. Activities designed to test today’s competitive strategy

2. 2. Activities designed to lead to tomorrow’s competitive strategy

3. 3. Activities designed to influence the pacing and timing of change”.

Improvisation and Simple Rules – According to Carpenter and Sanders (2008) “Strategy in hypercompetitive contexts differs from that in more stable contexts in that the former is typically accomplished through managerial improvisation: managerial practices that contribute to a culture of frequent change dictated by a few simple rules. This view holds that when business landscape was simple and relatively stable, companies could manage complex strategies”. We use this strategy in our company, For example, during the Chinese currency devaluation period, the market was unstable and complicated but we based our strategy and what if analysis based on simple rules and then used a base to complicate and improvise our strategy

Sequencing Past and Future – According to Carpenter and Sanders (2008) “Successful new-business conditions are a reflection of those strategies that have been most successful. Ineffective strategies are jettisoned or marginalized as customers migrate toward firms with strategies that best meet their needs. Thus, managers use their understanding of the competitive environment to guide their selection and reconfiguration of portions of yesterday’s business practices”. Our CEO uses this concept a lot because he basis he future business decisions on the factors that were successful and improvise or change the strategies and plans that were unsuccessful during the last 30 years of business.