Referring to competition’s nature, the competitive landscape covers multiple aspects, including, the number and size of companies, their weaknesses and strengths, barriers to the market entry and exit, and substitutes’ threats. In the present day, it substantially differs from the traditional competitive environment that relied on large advertising budgets and economies of scale – and it continues to transform due to rapid technological progress. Due to constantly changing conditions, the contemporary competitive mindset is characterized by innovation, integration, flexibility, and speed. It relies on data in business decision-making in order to have competitive advantages and create transparent business processes, adapts to the latest market technologies, and aims to improve the consumer experience. In general, in order to stay competitive, the majority of companies focus on customer-oriented operations to meet people’s demands and strengthen brand awareness and loyalty. There are several drivers of the current competitive landscape, including new business models, consumer protection, price transparency, hypercompetition, and environmental awareness, however, the primary ones are flexibility and technologies. In other words, companies cannot implement only one strategy for stable growth and development and should use all technological advantages to outperform competitors.
Thus, those companies that are flexible, apply various approaches, and see opportunities may succeed even in tough economic conditions. For instance, NVIDIA, a multinational technology company that designs graphics processing and chip units for professional markets, gaming, and mobile computing, performs excellently regardless of the COVID-19 recession. The company has taken advantage of a global lockdown and people’s self-isolation focusing on remote computing services and video gaming. For instance, approximately seven million Nintendo gaming consoles with NVIDIA’s chips were sold in the third quarter of 2020 (Fitch, 2020). This case demonstrates that in the current competitive landscape, those companies who may rapidly adapt to any conditions will be able to stay productive and highly demanded.
Reference
Fitch, A. (2020). Nvidia benefits from sustained pandemic-era remote work, videogaming demand.The Wall Street Journal. Web.