A firm can pre-empt imitation 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: imitators should be welcomed.

Question

Quizplus · Accepted Answer

Introducing new products to fill each niche, investing in capacity ahead of market growth and filing many patents can create barriers to imitation and signal to competitors that the firm is capable of innovative and agile responses. Vigorous legal action may not always be effective and could drain the firm's resources. Threatening to imitate its imitators is aggressive and risky. Welcoming imitators could potentially harm the firm's competitive advantage.

A Firm Can Pre-Empt Imitation by