In this we know about how to create a monopoly in your business means how to create a barrier in your business and also for a small business even what are the examples of monopoly on how to create a monopoly in saturated business.
1- Intellectual property protection
Intellectual property protection means you have to make a trade secret in your business. Let’s take the example of a Coca-Cola. The solution syrup made by Coca-Cola is a secret trade weapon for the Coca-Cola drink they only tell the bottler that only adds carbonated solution and basic recipes in that secret trade solution and make the drink. Only a few people know about that secret solution and nobody knows who knows the recipes of that solution. Coca-Cola started in 1981 but till now nobody knows about that secret syrup solution.
Colonel Sanders the founder of KFC follow the same kind of trade secret recipes in their business to make fired chickens. Now you have to think about how you can create these kinds of secret trade in your business or create barriers for your business.
2- Patent and Licenses
This patent and license are mostly used in European countries. This Patent and licenses are mostly used in Pharmaceutical industries because this patent & license provide a right to the owner that no other competitor made that kind of product. In pharmaceutical industries, people make different kinds of medicine and take their patent on that medicine.
3- Distribution Network
A Distribution network means you have to create a good partnership with your distributor and retailers because they are only who are presenting your product to the customer. Let’s take an example of Nokia, the mobile company Nokia give the very less margin to their retailers and distributors. So the retailers and distributors are waiting for another product in the market and when the Oppo and Vivo come to the mobile market they built a good distribution network in the market even they give a very good margin to their retailers and distributors. So the retailers and distributors always presenting their products to the customer. And like this Oppo and Vivo create entry barriers in the market.
4- Exclusive Rights
You have to know about this in your business is there any international product is available to whom you take exclusive right for your business. Like there are so many mobile companies who are selling their products in Flipkart and Amazon because this Flipkart and amazon take the exclusive right of that product. And this is also a kind of entry barrier in the market.
Also Read : Business Strategies for Success
5- Economies of scale
Economies of scale mean to sell your products on a very high scale and the volume of your product is increased in the market, even if your margin is low that doesn’t affect your business because of the high scale of selling. For example Walmart, Big bazaar, and D Mart, etc they purchase the goods and products in very bulk and cheap amount from the industries and sold at very low prices to the customer. So this is also a kind of barrier and monopoly example.
6- High capital investment
This is also a kind of trade barrier in business but everyone can’t apply this barrier in their business. Let take an example of Jio. Jio invests 2.5 lakh crore in new technology and creates a very big entry barrier for other networking companies. So Jio is also the best monopoly example through his high capital investment.
7- Proprietary technology
The best example of proprietary technology is Microsoft Windows. The market share of Microsoft window is 90% in the world because Bill Gates (The Founder of Microsoft) create a different kind of entry barrier in the market and that’s why today Bill Gates is coming under the world richest billionaire and create an extraordinary entry barrier in the market. So Microsoft is also the best monopoly example.
8- Excellent customer service
You have to provide excellent or best customer service to your customers because if your customers are satisfied then automatically you can create a barrier in the market. Let’s take the best example of creating a barrier through customer service is Domino’s Pizza. The scheme of delivering the order of customers within 30 minutes or free helps to create a barrier in the market. To provide a different kind of customer service or best customer service to your customers. So Domino’s is also the best monopoly example.
9- Brand Equity
The best example of brand equity is M-seal, actually the M-seal is the name of a brand not the name of a product which is epoxy compound. The few example synonymous brand name is noodles means Maggi, Adhesive means Fevicol, and toothpaste means Colgate so these synonymous branding is creating a barrier in the market. So this is also the best monopoly example.
Also Read : Business Strategies for Success
10- Loyalty beyond logic
You have to create loyalty beyond the logic of your product in the market. It means you have to make your product in this type that no other substitute product can replace your product in the market. So your product has a strength or quality that the customers of your product never substitute your product with other products. Create your service in the market that the customer becomes loyal toward your product.
So if you want to create a monopoly in the market so follow these points for creating the monopoly in any business as well as creating a monopoly in saturated business and these are the best monopoly examples which know above.
You have to create innovation and differentiation for your products to create barriers in the market.