Preemptive Advantage

Further, psychological positioning need not be in relation to competitors. A company may consciously cultivate a general image, for example, as an effective innovator (3M, Citibank), which gives the business a preemptive advantage when untried new products are being offered, or as a tried-and-true, stable, and reliable giant (Prudential's "piece of the rock," IBM's "service is our business," Holiday Inns' "no surprises"), which gives the business a preemptive advantage with customers who seek assurances of consistency and permanence.

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MACMILLAN, Ian C., 1983. Preemptive strategies. Journal of Business Strategy. 1 January 1983. Vol. 4, no. 2, p. 16–26. DOI 10.1108/eb039016. Preemptive strategies often offer the best opportunity to gain advantage over competitors and upset industry balance. Preemptive moves exist all along the industry chain if one knows where to look for them. Companies can preempt their rivals in myriad ways, ranging from threatening major investments and securing critical skills to cornering raw materials and components and positioning products in a unique way.

Exploiting a Rival's Strengths

Preemptive opportunities are enhanced by selecting moves that extend the period of preemptive advantage because the competitors are highly reluctant to respond to moves that dilute their strength, force them to relinquish a major commitment, or precipitate antagonistic responses from powerful vested interest groups.

This issue of response barriers, or lags in competitive reaction, is discussed in detail by MacMillan and McCaffery [5].