Inefficiency can create a moat. If you can charge a lot for your product, you have ample cash for advertising, marketing, and lobbying, and can come out with ma

Inefficiency can create a moat. If you can charge a lot for your product, you have ample cash for advertising, marketing, and lobbying, and can come out with many product variants. If you're the lowest cost producer, you don't have the margins to do that. The current US auto industry is an example of that strategy. So is the current iPhone.