In markets that are dominated by only a few firms, the degree of industry stability has no effect on competitive advantage.

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In markets that are dominated by only a few firms, the degree of industry stability can have a significant effect on competitive advantage. If the industry is stable and not experiencing major changes, the dominant firms may have a stronger competitive advantage due to the barriers to entry for new firms. However, if there is a significant change in technology or consumer preferences, the dominant firms may struggle to adapt and new entrants may gain a competitive advantage.

In Markets That Are Dominated by Only a Few Firms