Signaling Challengers That Retaliation Is Likely
♦Signaling is an effective defensive strategy
if the firm follows through by:
●Publicly announcing its commitment to maintaining the firm’s present market share.
●Publicly committing to a policy of matching competitors’ terms or prices.
●Maintaining a war chest of cash and marketable securities.
●Making a strong counter-response to the moves of weaker rivals to enhance its tough defender image.