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ig * WHARTON ON DYNAMIC COMPETITIVE STRATEGY Baitors George S. Day ‘and David J. Reibstein with Robert E. Gunther GIVEN THE BOOK'S INCEPTION AND COLLABORATIVE NATURE, WE DEDICATE THIS Book TO OUR WHARTON COLLEAGUES AND Tre WHARTON SCHOOL FOR PROVIDING SUCH A STIMULATING ENVIRONMENT. ape 8 V9 ty Cece 5. iy nd Dvd). RS Ey pl Wg nt fc pms hepa vat oa Rem bpm he Way ae Pept dem git cue a ae nthe pcs at gel eg (Mecaine oe passes ree Wi ae ep Uso Co Conn itn Det: Then Rabe wb Rae Camber me DE sete CHAPTER 11 PREEMPTIVE STRATEGIES JERRY WwiND on ple espns rife ations, premiere tsi 2 competitor th cmigettor mab move Elie preeption ay Teco the mt ifs settle nimple, a it a among the mos poi This ape debs peompin an press re rset pr. ies preemption by al he po ental moreso competion then pres famework fr omting remptioe rate Woes iis possi, preemption is pestups the more pomerfl form of competitive maneuver. A es tive move treo op, slow, ohm the damage ofa vals action afterit hs been nite. A simple offensive manewver is designed to stack a competitor or move in 4 new direction, In conta, peep tion is focused on attacking the Rture moves of» competvn, joe they have been made, Preemption atacks the oompetto’sietion vo attack, Defensive maneuvers ight be compared firing anni Sie barrage in tesponse to an atack. Offensive maneuvers ae ike Inunching your own attack. Prempion i taeamount 9 knocking ‘ut your vals ses while the ae sl on the ground, Ox, to tae the analogy of a chess mitch, preemption i siting contol of key ‘quate othe boat hus preventing competitors fem moving ito thone postions. rina very powerfl attack tat en slow or sop com- ptt or pin them down before they have had chance toa PREEMPTIVE STRATEGIES ‘Consider a few examples: + Laing up capacity. Aicipting growth inthe marks fr 3.5- inch disks in 1984, Sony announced » fivefold increte in pro- duction capac. made this move before IBM had made else its imention forthe next generation of personal computes. This extensive eapscty discouraged woul-be rivals fom sting up thei own pane + Loin nmr Gillette moved Senor into 19 counties mos Simultancotly, a PAG introduced Pager Phe to 90 con trie in les dana yea. This aid propagation of new prods rae it iil for ato crest oho in gba markets. + Lacking p minds A software compaty smnounces produc that Jsmore than yea fro reaching the market. Castomers wit for this promised "vaporware,” whichis repeatedly poxponed oF never produced, Meanwhile, competitor? produce that ate on the shes tod are ignored customers wat forthe promised new product. The software company has preempted vals + Blocking «competitor's intended ation. Inthe samen of 199% Kel Jog was planing to lanch anew whole grain shredded wheat. ‘The fovified cel, whose packages described its the "mont trtious shredded wet you can buy.” was de to arive a etal son August 6 ad Kellogg bad produced 7,800 cases with the claim printed on the box. On July 26 ayers for rival Nabisco senta lee to Kellogg suing of “Tbe and sseading cans on ts packaging and threatening to su if Kellogg did ot with. Ara its claims Ins etter, Nao revealed hat it would be a troducng its own soon-sie shredded whes that would ako be fortified and woud imate Kellogs cis Nabisco ed the Jaunch ofits ow eel to preempt Kellog’spostioning the aly fotfed whole grain dred wes cee A PROCESS FOR PREEMPTION ‘To develop preemptive strategies, managers nee to engege in three level of analysis