Differentiate our product to appeal to a narrower group of consumers, in the hope that our rival will do the same.

Don't branch out into a new product line, for fear of distracting attention from the old product line.
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Fire our special promotions marketing dept. , so our rival will fire his too.
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Aggressively seek a new patent, to stop our rival from getting it first.
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Enter in just one city, rather than ten, to avoid stimulating price cuts.
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