Trying To Create Your Personal Monopoly? Why You Don’t Really Want To Follow This Advice: It’s Non-Sense.
Despite all the hype about “creating your personal monopoly”, here’s why you don’t want to build one.
First. It’s selfish. In the long game, it focuses on you, not on the people you want to serve. Second. It’s not real. We’re all in a big, red, bloody ocean and unless you know how to help your customers, you’re out. You’re always competing with something else — whether you’re conscious of it or not.
You want (and need) competition.
4 Arguments To Not Create A Monopoly
- Lack of choice. a.k.a. inelastic demand. They can raise prices and their consumers don’t really have a choice but to comply.
- Less incentives to competitiveness. Not having competitors fosters the lack of efficiency and innovation. “Why do more if the money is already here?”
- Extends the status quo. You get there innovating and creating new ways. Once you’re in that monopoly position, aversion loss kicks in. Doing risky things might cost you all, so you start playing it safe.
- The consumer has no power. It can end up in them not being best served.
Why You Want Competition
Higher competitiveness. You’re pushed to get ahead, not only to “do better”.
Deeper market insight. You get the right kick to search and find new ideas, approaches and tools to better serve your customers.
Win-Win relationships. You can get a better relationship referring work (that you don’t have capacity to work on or simply work you don’t want to do).
Skim off the right clients. Price buyers can move towards the less expensive options. These low-priced competitors will take the undesirable work and help you avoid joining the race to zero. Good system, right?
And the best of your low-priced competitors can become good implementation partners if you focus more on strategy work.
Philip Morgan’s essay on Why Competition Is A Good Thing.
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