Creating Value in the New Competitive Landscape

The past two decades have seen the global competitive environment alter dramatically. Competition is now more intense as a result of increasing globalization, greater use of new technologies and the Internet (Amit and Zott 2001, Kanter 2001, McKendrick 2001, Murtha et al. 1998). Other factors include a rapidly and radically changing competitive environment (Eisenhardt and Brown 1998). Nearly a decade ago, Bettis and Hitt (1995) referred to the emerging ‘new competitive landscape’. Around the same time, D’Aveni (1994) propounded the perspective ‘hypercompetition’ when he stated that hypercompetitive conditions are manifested in ‘inherent instability and change’. A dynamic and highly charged environment has some significant consequences for any business, such as the need for greater adaptability and flexibility (Volberda 1996), the changing market rules and processes and the necessary organizational structures and competencies needed for competitive advantage (Eisenhardt and Brown 1998, Hamel 2000).