A technology upgrading strategy is utilized by incumbent companies in a mature industry to deter entry by investing in costly technology upgrades that potential entrants would have trouble matching.

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This is a common strategy known as "technology barriers to entry" or "technology lock-in." By investing in advanced technology, incumbent companies can increase efficiency, lower costs, and offer better products/services, making it difficult for potential entrants to compete. This strategy can create significant barriers to entry and give established companies a competitive advantage.

A Technology Upgrading Strategy Is Utilized by Incumbent Companies in a Mature