Discouragement and anticipation
Furthermore, an enterprise using the phenomena of dissuasion and anticipation won't be imitated. Both help demoralize competitors by showing them that imitation is not the path to take in order to reach important results.
With dissuasion, enterprises use fear; the threat of vengeance and retaliation against any enterprise which imitates the methods of the leading enterprise. Nevertheless, not every enterprise is able to use this method. An enterprise must be capable enough to scare the competition, make them aware of their imitation through their financial, economical, and storing capabilities. This gives way to a war in prices. The leading enterprise has the capability to assume the earning of lower benefits. This would drown the economy of its competition since, in their case, the cost of production could be higher than their income if prices become too low.
Such was the case in Spain with the introduction of Amena , just months after the liberalizing of mobile phones sector. Amena broke into into the market with considerably lower prices than those offered in that moment by Movistar and Vodafone (Airtel at that time).
An enterprise can also avoid imitation through the use of anticipation. It consists in occupying existing market niches in its sector before another enterprise. Thus, sometimes just strategically, an enterprise avoids the emergence of new competitors or the improvement in the position of existing enterprises.