A monopoly is a situation where one dominant player owns the market. Historically, this has resulted in poor outcomes for consumers. The incumbent can set prices and manipulate prices, becomes lazy and inefficient, compromises on quality and offers mediocre service. All the while scooping profits from unhappy customers who have no other alternative.
We can all agree this is not a desirable situation unless you are the lazy, stale monopolist.
Monopolies, on the other hand, are still very desirable. Achieving one is like finding the equivalent to the fountain of youth for your business. It guarantees sustainability, higher profits and a larger potential for impact. It offers opportunities for effective infrastructure deployment and efficiencies of scale.
The challenge is that we have mapped out the path to monopoly by tracing a mirror image. Each and every business has the potential for monopoly. To find it we need only two things.
- Redefine the market you wish to dominate. Who is your tribe? You have the ability to own doggy parlour services for every poodle owner in your city. Define niche markets that have a unique set of needs no one can serve better than you.
- Own the market, not by regulation or customer contracts, but by value. Offer such a compelling value proposition that it does not make sense for your unique set of customers to go anywhere else. This commitment self-perpetuates. As the customer needs evolve, so should my value offering.
This way I can own the market, but only if I offer the best value and the most innovative solution. This is great for my business and the market. They give me the monopoly because they want me to have it.
Power given is what power taken will never be.