Only one thing happens in a business at a time as mo other Bill Gates will prepare the operating system, no next Sergey Brin and Larry Page would prepare Google search engine and not even new mark Zuckerberg will prepare social networking site. Besides, if you are copying these people, then you are learning nothing from them. In this blog, we shall learn which kind of business should be entitled to us and what type of business can be flourished either novel or copied. We shall also see what if we consider rebuilding and making some additions in the existing business to creating monopoly.
Types of conventions used to create a monopoly
If you purchase one typewriter and sell off 1000 typewrite to the world, you move from one to the infinity level. This is also termed globalisation. China is a practical example of globalisation whose work is to copy every potential, and authentic thing produced globally.
If you make the car in the generation of bullock carts or horse carts, make an aeroplane in the times of cars and smartphones in the era of telephone, you are going from zero to one level. This system also called technology, and America is its perfect example. Its work is to accomplish innovations and bring something new to this world.
According to some experts, we should always endeavour to move from zero to one as the companies that are using it take over the market with their monopolies. These companies do not need to reduce their cost due to competition.
These companies bring new products for their customers, and along with it, these companies keeps their employees happy all the time. The best example of this is Google which has acquired its name in the Oxford Dictionary.
Specialization for creating a monopoly
If you are thinking of creating a monopoly of your business, you must follow these four points:
Proprietary technology
If you create a kind of product that is much difficult to be copied by others, then you can create a monopoly. For this purpose, you must improve the existing technology by 10 times. The improvement lowers than this scale will be considered as small innovation and can be copied easily.
When Amazon launched in 1995, it was then considered the biggest book store in the world. The reason was in the most significant number of books collected while it collected the publisher’s list of books. It bought them when the customer asked for its delivery. With this, Amazon got success in creating a cite monopoly.
Network effect
If you use a network effect on your product, it will be impossible for your customer to leave your product. If you do not account for FaceBook and all your friends, have their accounts on there. If you do not make an account on it and join some other networking site, then your friends would consider you mad.
Economies of scale
You can create a strong monopoly business if you can scale it. At some points, it is tough to scale a business. Suppose you run Grooming classes, you can serve only limited customers, and it does not matter with more Grooming experts or opening more institutes.
There is an advantage for software companies that they can scale their business because to make another copy of the software. You do not need to spend much. In addition, there is another benefit of software to sell with zero cost.
Branding
If you make a strong brand, you can create a monopoly. The Apple Company outsource its product with extensive care. The users of Apple product believe that every product of Apple would be perfect in terms of its usage. This way, Apple has been successful in creating its monopoly.
You can use financial services to get support from direct lenders in the form of 12-month loans to sustain your moves of creating a monopoly.
Concluding the content
To create a cite for monopoly, we should follow at least three steps:
- Start from small and then think about creating a monopoly. You must start your business from a small market, and the reason is simple: controlling a small market and creating a monopoly in that is easy. Whereas it is much tricky in big markets as big players will not let you create your monopoly.
- You are scaling your business from dominating small markets. When you have complete control of small markets, you can have full control of the biggest markets. If we talk of Amazon, Jeff Bezos first started selling books to consumers. He successfully created a monopoly by making available all types of books there.
- Do not disrupt big business in starting. Small start-ups have no more funds to combat the moves of big companies. If you ignore their monopoly, then you cannot survive in the market.
Apart from that, if you are interested to know about How to Successfully Scale Your Business then visit our Business category.
