The article written by D’Aveni reveals the central focus of strategy is understanding the relationship between an environment’s turbulence and the company’s responses and choice of strategy. Strategic supremacy offers a unified view of strategy where managers can understand the interaction between the environment and the company strategy. The process of understanding begins with analysis and understanding the rules of the game. By defining the rules of the game, a company can control the evolution of the atmosphere. Refining the rules of the industry is different than finding a niche, in defining the rules the player with strategic supremacy shapes the playing field and competition. With a strategic supremacy, companies can also gain advantage by defining the rules for the competitors. There are four different competitive environments: equilibrium, fluctuated equilibrium, punctuated equilibrium and disequilibrium.
Equilibrium: is characterized by long periods of little or no competence-destroying turbulence (stable and low). Fluctuated Equilibrium: is characterized by rapid turbulence based on frequent competence-enhanced disruptions (fluidly changing). Punctuated Equilibrium: is characterized by brief yet dramatic periods of turbulence based on discontinues change (occasional upheavals). The leaders face the challenge of knowing when and how to respond the abrupt upheavals. Lastly, Disequilibrium: is the most challenging and hypercompetitive environment and is know for frequent disruptions (chaotic). In all environments the goal is to achieve strategic supremacy by “controlling the degree and pattern of turbulence” (134).