"If it (the U.S. economic slowdown) continues much longer, D'Aveni's ideas might start to seem less provocative and more mainstream."- U.S. News & World Report
The United States and its economic allies are under attack by a force unlike any they have ever faced. China and other emerging nations are competing for markets around the world using their own versions of capitalism - and, thus far, they are winning handily.
In Strategic Capitalism, one of the world's leading authorities on global business strategy, Richard D'Aveni, describes how the "economic cold war" began, how it is being played out now, and how the West can change the course of events in its favor.
Brilliantly conceived—and sure to ignite passions on both sides of the political aisle—Strategic Capitalism calls for an end to the economic idealism that dominates the national dialog. It also calls for a cold, hard focus on reality, which is this: government-managed capitalist systems consistently outmaneuver and outperform the traditional laissez-faire capitalism of the West.
With refreshing levels of thoroughness, knowledge, and detachment, D'Aveni describes the competitive landscape today. These are the facts:
If the West does not act soon, it stands to lose everything it holds dear: financial prosperity, economic freedom, geopolitical power, national security, and even democratic values.
This is disruptive innovation on a global scale. But instead of companies using breakthrough products and brands to gain market share, nations are devising "game-changing" economic systems to seize influence over—and beyond—the global economy.
Bleak as the situation may be, D'Aveni contends that the West can reverse the trends currently tilting the global balance of power. In order to meet the challenges of the future, America must revisit long-held assumptions about economics and economies, seriously consider radical alternative policies, and embrace the concept of Strategic Capitalism.
Richard D'Aveni has been named among the top 25 business thinkers in the world by CNN, Forbes, the (London) Times, Harvard Business Review, and The Times of India based on the rating of the Thinkers50. Author of the bestselling book Hypercompetition, he is the Bakala Professor of Strategy at the Tuck School of Business at Dartmouth College and a winner of the prestigious ATKearney Award for his research.
"A challenge every company must face."- Financial Times of London and the Los Angeles Times
Commoditization—a particularly virulent form of hypercompetition—is destroying markets, disrupting industries, and shuttering long-successful firms. Conventional wisdom says the best way to combat commoditization is differentiation. But this strategy is difficult (and expensive) to implement, and it keeps you ahead of the pack only temporarily.
In Beating the Commodity Trap, Richard D’Aveni provides a radical new framework for fighting back. Drawing on an in-depth study of 30-plus industries, he recommends first identifying the commoditization trap you’re facing. He describes three:
Deterioration: Low-end firms enter with low-cost/low-benefit offerings that attract the mass market—as Zara did to high-end fashion companies.
Proliferation: Companies develop new combinations of price paired with several unique benefits that attack part of an incumbents’ market—as Japanese motorcycle makers did to Harley-Davidson.
Escalation: Players offer more benefits for the same or lower price, squeezing everyone’s margins—as the iPhone did in mobile devices.
The author provides a tool for diagnosing your competitive position and shows how to improve it while also increasing your pricing power—by destroying the commoditization trap confronting you, escaping it, or even turning it to your advantage.
Illustrated with a wealth of examples, this concise, practical guide gives you the framework and tactics you need to battle commoditization.
"A Modern-day analogue to The Art of War, the ancient Chinese classic that is the Bible of many corporate strategists"- Fortune
Many American industrial leaders have been battered to their cores. Jack Welch, the chairman of General Electric, called the frenzied competition of the 1980's "a white knuckle decade" and said the 1990s would be worse. In this path breaking book that will define this new age of "hypercompetition," Richard D'Aveni reveals how competitive moves and countermoves escalate with such ferocity today that the traditional sources of competitive advantage can no longer be sustained. To compete in this dynamic environment, D'Aveni argues that a company must fundamentally shift its strategic focus. He constructs a brilliant operational model that shows how firms move up "escalation ladders" as advantage is continually created, eroded, destroyed, and recreated through strategic maneuvering in four arenas of competition. Using this "Four Arena" analysis, D'Aveni explains how competitors engage in a struggle for control by seeking leadership in the arenas of "price and quality," "timing and know-how," "stronghold creation/invasion," and "deep pockets." Winners set the pace in each of these four competitive battlegrounds.
In this path breaking book, Richard D'Aveni shows how competitive moves and countermoves escalate with such ferocity today that the traditional sources of competitive advantage can no longer be sustained. D'Aveni argues that a company must fundamentally shift its strategic focus. He constructs a comprehensive model that shows how firms move up "escalation ladders" as advantage is continually created, eroded, destroyed, and recreated through strategic maneuvering in "four arenas" of competition. Using detailed examples from hypercompetitive industries such as computers, automobiles, and pharmaceuticals, D'Aveni demonstrates how hypercompetitive firms succeed by disrupting the status quo and creating a continuous series of temporary advantages.
With its emphasis on real-world experiences of corporate warfare, this abridged paperback edition of D'Aveni's masterwork will be essential reading for scholars and managers alike - a perfect introduction to the battlefield of hypercompetitive rivalries.
Strong forces of change are reshaping the management landscape. Today's business environment is fraught with uncertainty, diverse global players, rapid technological change, widespread price wars, and seemingly endless reorganization. The editors and contributors of Managing in Times of Disorder demonstrate that a far-reaching shift has occurred in the speed and magnitude of competition that has resulted in a new organizational paradigm, hypercompetition. The innovative chapters in this groundbreaking volume form a complex fabric of new theoretical frameworks, models, strategies, organizational forms, and interdisciplinary methods that address hypercompetitive environments in a radically new way. The authors findings reveal new patterns of language, metaphor, structure, and strategy that are necessary for business survival in chaotic times. Managing in Times of Disorder will be of interest to students and professionals in organization studies and management.
"A Powerful competitive tool with an imaginative, compelling, and exceptional strategic approach."- Robert Hormats, U.S. Undersecretary of State for Economic Growth, Energy, and Environment; and former Vice Chairman, Goldman Sachs International
Strategic Supremacy: How Industry Leaders Create Growth, Wealth, and Power Through Spheres of Influence
Are upstart competitors taking deadly aim at your company's products and markets? Richard A. D'Aveni, author of the famous attacker's handbook Hypercompetition, presents counter-revolutionary strategies and tactics that any industry leader or established company can use to defend itself against revolutionaries, disrupters, or hypercompetitors. The secret lies in making the rules, not breaking them, D'Aveni says, because rule makers still rule. Arguing that "profits and prosperity come not from revolution but stability and orderly change," D'Aveni presents a commanding framework that will enable any resource-rich or clever defender to gain Strategic Supremacy by being first to define the playing field.
D'Aveni demonstrates how global powerhouses such as Disney, Microsoft, and Procter & Gamble have achieved preeminence by reconceptualizing their product portfolios as powerful competitive arsenals he calls "spheres of influence." Essentially a new way to compete by restructuring portfolios around a core geographic/product market, spheres enable any company to influence the behavior and positioning of rivals.