Similarities and differences between traditional competitive strategic thinking and modern competitive strategic thinking

Time is a very important strategic dimension neglected by traditional competitive strategic thinking, which determines the durability of competitive advantage. Dynamic competition has the following characteristics: ① Dynamic competition is characterized by high-intensity and high-speed competition, and each competitor constantly establishes its own competitive advantage and weakens the competitive advantage of its opponents. (2) The strategic interaction between competitors has obviously accelerated, and competitive interaction has become a decisive factor in formulating competitive strategies. ③ The competitive advantage of an enterprise is temporary and cannot be maintained for a long time. The effectiveness of competition depends not only on the time sequence, but also on the ability to evaluate competitors' reaction ability and change demand or competition rules. Therefore, from a dynamic point of view, the core issue of competitive advantage of enterprises in a dynamic environment is the continuous renewal of competitive advantage and its sources, so as to cultivate or find the sources of competitive advantage that can be continuously updated more quickly. At the same time, due to the duration of competitive advantage, after an enterprise develops a competitive advantage, before it is finally destroyed or eroded by competitors' actions, the rapid change of the environment will automatically make the competitive advantage ineffective, and the enterprise must maintain a high degree of flexibility and update or replace it with a new competitive advantage. In the home appliance industry, we can see many classic cases. Changhong took advantage of the scale cost and won the first round of the color TV war by taking the lead in reducing the price of color TV. Then other color TV factories began to expand their production scale to make up for their own shortcomings. At the same time, they also saw that they could not compare with Changhong's scale cost advantage, so they created new competitive advantages in product quality and marketing, and changed the content and rules of competition. If Changhong, after gaining the scale cost advantage, does not rely too much on this advantage, concentrates resources to build its own competitive advantage in R&D, sales channels and after-sales service, and adopts the competitive strategy of two consecutive rounds of price reduction, it will not be at a disadvantage. It can be seen that the dynamic competitive strategic thinking based on creating competitive advantage has a decisive influence on the competitive results of enterprises in the dynamic environment. Every industry has basic economic logic, from local product competitive thinking to whole process competitive thinking. The way to participate in strategic competition is to develop and utilize the existing asymmetry, build entry barriers, and choose industries with relatively weak competitiveness and great profit potential. In this way, the only action of an enterprise is to choose a product market competition strategy to coordinate with the opportunities or constraints provided by the economic environment, and compete around market share under the assumption that market share represents a higher level of profitability. However, regarding the product market as the only competitive place, it is difficult to understand whether the success of leading enterprises is the result of strategic choice or determined by the fixity of competition within the industry, and it is even more difficult to explain the persistence of strategic inconsistency among different enterprises in the same industry. Therefore, in a dynamic environment, strategic competition is no longer a positioning, but a framework. Competition depends not only on how enterprises participate, but also on the resources and abilities that enterprises have to participate in the competition. Enterprises must change from the fixed competition rules under the established industrial economic logic to the free choice of roles, and from the competitive thinking based on positioning and flexibility to the competitive thinking of formulating competitive game rules, so that the strategy is not only related to the positioning and flexibility in the product market, but also related to the ability to allocate and connect competition between different competition levels. Obtaining competitive advantage is essentially the result of excellent ability to link different levels of competition, and product competition is only the last stage of multi-level competition. As described by Kari Hamel and C.K.Prahalad in their book Competition for a Great Future, the whole competition can be divided into three categories: competition for industrial foresight, competition for core competence and competition for market position. The key competitive problem in dynamic environment is no longer simply to decide where or at which level to compete, but how to transform the competitive advantage obtained at one level to another. Therefore, the competitive strategic thinking in the dynamic environment requires enterprises to deeply understand the factors that create competitive space based on human lifestyle, technological development, population trends, consumer preferences and so on. , predict the size and outline of future business opportunities from the changes of dynamic environment, and then transform business opportunities into goods or services that meet the demand through their own capabilities. It emphasizes the construction, application, development and renewal of enterprise's foresight and innovation ability, rather than the industry or product market based on traditional competitive strategic thinking. In this way, the development, preservation, utilization and renewal of enterprise's foresight and transformation ability has become the primary problem of enterprise's competitive strategic thinking in the dynamic environment.