A firm can pre-empt competitors from invading its market space by:
A)Vigorous legal action
B)Threatening to imitate its imitators
C)Introducing new products to fill each niche,investing in capacity ahead of market growth and filing many patents
D)None of these: competitive imitators is inevitable and unstoppable

Question

Quizplus · Accepted Answer

Introducing new products to fill each niche, investing in capacity ahead of market growth and filing many patents can help a firm to pre-empt competitors from invading its market space. This allows the firm to continuously innovate and stay ahead of the competition, making it difficult for competitors to enter the market. Vigorous legal action may not always be effective and threatening to imitate its imitators may not deter competitors from entering the market. It is true that competitive imitators may be inevitable and unstoppable, but a firm can still take steps to pre-empt them.

A Firm Can Pre-Empt Competitors from Invading Its Market Space