A lot of organizations live in some game theoretic equilibrium that prevents cost improvements from being metabolized by the org without burning the cost elsewhere.

For example, consider a commodity business for software product X. All vendors of this product had their costs reduced by a factor of 100 over night for developing new product. They could increase their profits, lower their price, or re-invest the dividend. In software, the buyer usually buys on quality - so they all re-invest.

Now they are spending the same amount on product development, for the same price tag, and earning the same profit - but they might be shipping much faster.