Comment by jabl
4 years ago
Well, in a way all businesses want to become monopolies. And hence they try to build moats around their core businesses to prevent competitors from entering that market, or in the worst case, causing the entire market to become commodified. The form of that moat varies depending on what said core business is. One version is even mentioned in the article:
> Another way that I like to express that is “create a desert of profitability around you”. I once had a strategy professor define the Google business model somewhat like that, where “Google tries to make every other business around it free or irrelevant”…A desert of profitability shifts consumers to you, and keeps competitors away.
> Wouldn't a Zero to One / Blue Ocean mindset be smarter?
So if you're about to start a business, should you create a new market (becoming a monopolist in that market), or should you enter some existing highly competitive and commodified market? The answer sounds obvious. Once you do that, then the next question is how do you maintain your monopoly position within that market? See above.
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