Frederiksen — Memoirs


Competition is for losers; a race to the bottom. Monopoly companies stand to create (and maintain) lasting value for themselves. There are five monopoly characteristics:

1.) Regulation

2.) Tech

3.) Timing

4.) Marketplace

5.) Size

Securing several of above elements assures the monopoly position further.

Many businesses subscribe to the idea of starting big, then shrinking. As for example a restaurant, operates in a colossal market filled with like-minded competitors vying for a share of the market. Big markets make it difficult for businesses to take off.

A company should embrace the opposite approach: start small, then monopolize. It’s far easier for a business to dominate a small market than a larger and more established market. Control over a small market can catapult a business into new areas and markets for expansion. For example, Amazon launched as an online bookstore, through selling at cost building float has transformed into a giant purveyor of ecommerce.

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