Switching Cost
A switching cost is what a customer must spend in money, time or disruption to move to a competitor.
Why It Matters
High switching costs protect revenue without requiring a better product, which is why integration depth is a strategic choice rather than a technical one.
Related Terms
- Competitive AdvantageA competitive advantage is whatever allows a company to earn better returns than its rivals for a sustained period.
- Economic MoatAn economic moat is a structural barrier that keeps competitors from taking a company's profits: scale, brand, network effects, switching costs or regulation.
- Enterprise AIEnterprise AI is the use of AI inside large organisations, where the work is less about the model than about data access, permissions, integration, audit and change management.
- ChurnChurn is the rate at which customers stop paying over a given period.
VANTAGE52 Coverage
Published reporting filed under the topics behind this concept.
Entrepreneurs
egaranti Raises $1.1 Million in Pre-Series A Funding to Expand Across Central Asia
egaranti, the Türkiye-based warranty technology company, has raised $1.1 million in pre-Series A funding to accelerate its expansion in Uzbekistan, enter Kazakhstan and Azerbaijan, and develop a new consumer-facing warranty application in Türkiye.
Technology
OpenAI And The Rise Of The AI-Native Business
GPT-6 Astra moves AI from answering questions to doing the work, which is an organisational problem.
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