A Business Monopoly will Change the World

image of a business monopoly building


A business monopoly will change the world and be praised for it.

Let me explain

Let’s imagine there are three companies in perfect competition with each other, the ultimate goal of a free economy.

Company A produces a white bauble for $2.50

Company B produces a red bauble for $2.45

Company C produces a blue bauble for $2.55

Besides the color and a slight difference in price, all these companies are producing the exact same thing.

The baubles all perform the same function, have the same life span, and have similar replacement costs.

All three companies know this so instead of advertising the unique features of the product (they have none), they talk about the unique features of the company itself.

“Made in America”

“Proprietary Techniques gone into production”

“Superior distribution channels”

Blah, Blah, Blah.

The truth is, they’re locked in a vicious price and advertising war that eats away their already small profit margins to something almost nonexistent.

Why do they continue to produce their respective baubles?

Because they’ve been told since they were children that competition is good and proves an idea has merit.

image of children wrestling

They’ve been told without competition, there’s no innovation in the marketplace.

Without Competition, the consumer suffers the consequences (that can be true on some cases, I’ll dicuss that later).

That’s probably why countries have anti-monopoly laws in place and pursue any company that’s doing too well in any specific industry.

The Government has chased down Google.

It has attacked Microsoft.

It dismantled the parent company of AT&T.

And will continue to fight perceived business monopolies wherever they exist.

But, what if I told you and proved to you monopolies were the only way for us as humans to reach the next frontier of development? Need more than just my word?

Over the next few weeks, I’m going to be diving into how monopolies are changing the business landscape as we know it and how you can create and grow your own monoply with zero competition

In essence, monopolies are the only way for us to go from a zero order civilization to a first order civilization

The Death of Competition and the Rise of Monopolies

image of two astronauts

You’ll have to conquer frontiers no one else knows exists

What do all successful startups have in common?

They either produce a proprietary technology that no one has or they improve on an existing technology by at least one order of magnitude (10x).

Xerox did it in the 20th century with its copy machine.

Google did it in the 21st century with its search engine.

Tesla Motors is doing it with its luxury electric cars.

All of these companies have or had an economic monopoly at one point and it allowed them to amass the resources necessary to continue to differentiate and make even more innovative products.

There is no competition as far as they were concerned.

Traditional Business Monopolies Vs Creative Business Monopolies

image of the owners of traditional monopoliesImage Credit Joel Ito

Let me take a step back and take us through the evolution of monopolies. They’ve gotten a bad rap throughout history because they’ve been bad for most of history.

Traditional Monopoly

Standard Oil was a traditional business monopoly that cornered the market and charged what it pleased for oil, at the same time; they produced much needed infrastructure and revolutionized the way petroleum waste products were used.

The Bell South Telephone Company was a  traditional behemoth, it controlled local and long distance calls for years because no one could afford to compete with them. Over time, they began to charge people whatever they wanted because there was no alternative.

Creative Monopoly

Microsoft had a creative monopoly on software that brought us faster and more powerful home computers year after year. They’ve dabbled in other products but their windows OS is the backbone of their business.

Oracle has a creative business monopoly on enterprise software solutions that has netted it billions of dollars over the last two decades. They make it easier for businesses to handle the increasingly larger amounts of data being produced about their customers and their goal is to do it better and cheaper than anyone else.

Google would’ve never started the driving car project, developed the android OS, or made strides in Google Glass if it was locked in competition with Yahoo and Bing for search engine advertising revenues or tried to adopt the traditional monopoly approach.

As you can see, business monopolies can be good, bad, or in between. It all depends on what the founders or leaders consider the end goal to be.

We don’t want to start and grow a traditional monopoly, which will only lead to stagnation. What we want to produce is a monopoly that stays on the forefront of innovation for the next 100 years.

It’s only when a company is able to free itself from the daily grind of backbreaking competition that it’s able to concentrate on things like company culture, employee benefits, and lightning fast innovation that earn it a spot in all those “top one hundred companies to work for in 20__” lists.

Competition is not your friend, competition is not proof of concept, and it’s definitely not what you’ll use to judge the viability of your latest project.

Make a Deliberate Decision to Become a Business Monopoly

image of a fork in the road

Instead of trying to enter a crowded space like oil production, solar energy creation, or steel manufacturing; choose to differentiate or improve on an existing technology by at least 10x.

10x better than your competition, 10x better than the last iteration, and 10x better in every other aspect.

You need to think about the long term growth potential of your next project and decide if it will stand the test of time for the next 10-20 years (minimum).

Are you different enough from the next person to be able to stand out from the crowd?

Marx said “people fight because they are different”, but when you’re different enough in a marketplace, no one can fight you because they don’t know how.

Shakespeare on the other hand came closer to the truth. He said “all combatants look more or less alike. It’s not at all clear why they should be fighting, since they have nothing to fight about.”

That’s the most beautiful definition of competition we have. Instead of fighting, these companies would be doing themselves a favor by merging, forming a monopoly, and bringing about innovation to their respective industries.

Conclusion

Your job is to bring about something so revolutionary, so unique, or so far ahead of your “competition” that they cease to exist as competition.

You’re going to create an industry like apple did with the IPad and the IPod.

You’re going to forget about what anybody else says and go for broke or nothing at all.

Sit down and brainstorm for now because in my next post, I’m going to tell you the most important factors that go into making a business monopoly that thrives and how you can set yourself up to create one.

Subscribe to the Indomitable Audacity mailing list to get notified as soon as the post goes live.

Tags

11 comments

Leave a Reply

Your email address will not be published.

Become a member


top