Retrieving "Cost Structure" from the archives

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1. Cost Advantage

   Linked via "cost structure"

   Cost Advantage vs. Price Advantage
   It is essential to distinguish between a genuine Cost Advantage and a temporary Price Advantage. A Price Advantage exists when a firm sells below the prevailing market price, irrespective of its underlying cost structure. If a firm achieves a low price solely through predatory pricing or unsustainable debt financing, it possesses a Price Advantage but lac…

2. Cost Advantage

   Linked via "cost structure"

   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).
   Regulatory Equalization: Governments intervene to mandate cost parity through standardization or universal access provisions for key inputs, thereby neutralizing geographic or structural p…