Notes

Economies of scale are not exclusive

🌿 Revisited June 9, 2026 at 1:10 PM Created January 19, 2025 at 3:42 PM Strategy 1 min read

While access to economies of scale does create efficiencies, it is not a competitive advantage per se.

If economies of scale are accessible at 10% of market share, that creates room for ten firms with the same economies of scale, which reduces your ability to use economies of scale as a competitive advantage.

In practice, this means that access to economies of scale in that particular market is not a defensible type of efficiency (or, at the very least, it’s not fully defensible).

References

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