“Creative Monopolies give customers more choices by adding entirely new categories of abundance to the world.”
“Monopoly is the condition of every successful company.”
I love some bits of hyperbole. I tell people, “I do not believe in competition.” The statement is bait for engaging conversation. The statement packs my thoughts on creation, differentiation, and marketing into a tiny sound bite. I further expound on my position with several thoughts.
- The best outcome with direct competitor focus is incremental improvement. Product development should initially identify unsolved market challenges not competitors. Solving challenges with a new approach is part of a monopoly strategy.
- Competition makes the market. Having competition validates that people exist with an identified challenge. Competition for most products does not exist in way people think. No ideas are so new that they create a new market without historical analogs. Transportation is a market with many challenges whether you have a buggy whip or the automobile.
- Market size makes competition irrelevant. The size (current, realistic, desired) of a startup is microscopic compared to the potential market. The Total Addressable Market (TAM) is, in broad scope, large enough to not matter. Even as a product/business niches down and delivers specific value, the market is large enough to make competition irrelevant. Competition harms low value businesses.