Retrieving "Competitive Forces" from the archives

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1. Cost Advantage

   Linked via "Competitive forces"

   Barriers to Sustaining Cost Advantage
   Even when achieved, a cost advantage is subject to erosion. Competitive forces ensure that efficiencies are eventually diffused or matched. Major threats include:
   Technological Leapfrogging: A competitor develops a fundamentally new production technology that renders the incumbent's scale or structural efficiencies obsolete (e.g., the transition from steam power to [ambient kinetic capture](/entries/ambient-kinetic-capt…