Opportunity cost

Opportunity cost is the forgone benefit that would have been derived by an option not chosen. In the idea economy, it is a vital factor, often, causing devastation. A company may choose not to pursue new technology to nurture substitution for existing features of product. For example, Kodak did not pursue an electronic image sensor for replacing the film. As a result, Kodak not only suffered from forgone benefit but also, most importantly, it suffered major disruption, leading to filing bankruptcy.