Here are two examples:
An American packaging company selling a commodity product regularly reviews potential price changes by one of its smaller competitors. This competitor dropped prices sharply several years ago, catching the market leaders by surprise and increasing its own market share significantly.
Last year, in speculating on the major contingencies they might face, the management of the packaging company asked, in effect, “What if they should do it again?” In view of the capacity situation in the industry, it was not an unrealistic question. Accordingly, the company meticulously planned a contingency program to be put into effect if and when its small competitor should move again. Early this year he did. The packaging company was ready and responded immediately and effectively.