Legal privileges & exemptions
What are Legal privileges & exemptions?
Special legal treatment can limit rivalry.
How Legal privileges & exemptions work
Map the privilege to a concrete restricted activity, then identify which revenues depend on it. Protection of one activity cannot establish protection of the whole business.
The question to ask of a company
Which activity can this company undertake that an otherwise equivalent entrant cannot? What is the scope of that difference?
Examples
- Illustrative scenario: An operator has a narrowly defined statutory exemption; adjacent services still face ordinary competition.
Who names it
| Author | What they call it / where it appears |
|---|---|
| Neumann | A Taxonomy of Moats — Legal privileges & exemptions |
Note. The diagnostic and scenario are Strategy Canon’s analytical application. Test the firm’s benefit and exclusion mechanism separately; this category alone does not establish Power.