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Striking Fear Into The Hearts Of The Competition

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Striking fear into the hearts of the competition is a type of competitive strategy that seeks to shake the confidence of a bitter competitor. This is an aggressive strategy that is characteristic of a strong position in the market.
As an example, consider a large software firm that announces a new product that threats a smaller competitor's core product. The announcement may cause the competitor to shift strategy to defend the product. This may also cause their stock to drop as their investors become nervous about the future threat. In some cases, the announced product may be vaporware with the announcement intended to distract the competition from other markets.
Overview: Striking Fear Into The Hearts Of The Competition
Type
Business Tactic
Definition
Communications designed to influence the strategy of a competitor by creating fear of a competitive threat.
Risks
A backfire effect whereby a competitive threat causes a competitor to innovate.
Techniques such as announcing vaporware are questionable on ethical and legal grounds. For example, it can be seen as misleading your stakeholders or as anti-competitive behavior.
Related Concepts
Business Strategy
Cognitive Biases
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