Sometimes the value of a capability is that it deters rivals’ actions without having to be deployed at all. As you will see, the video below demonstrates this principle nicely. In the context of industry analysis, this might be the credible threat of retaliation on new entrants. If it deters entrants, the threat may not have to be used frequently (though credible commitment to deter may be essential to demonstrate).

Contributed by Russ Coff