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5 Proven Ways To Create Monopoly Around Your Business To Boost Profitability

Emmanuel Nnaemeka

Entrepreneur

  Building a company that drives its sales, productivity, and profitability using a monopoly takes a whole lot of strategy application. Monopoly simply means market dominance. Many companies fight to gain a monopoly, especially in very competitive markets.
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Leading companies often thrive by strengthening their foothold over a market using monopolistic formula. Monopoly is the situation where an organization can regulate the price of products & services by creating various entry barriers for other players to cut the competition. In this article, I highlight five ways to build a monopoly around your business.

  1. Protect Your Intellectual Property

If you have invented a solution, let’s say in the tech industry to uncover a solution, ensure you meet the regulatory bodies to protect your intellectual property. Ensure to get the exclusive legal rights to manufacture and sell a certain solution. By doing this, you have created a barrier that will hinder competition.

  1. Build A Strong Distributor Network

Another way to create a monopoly around your company is to build a strong distribution channel. The way to go about it is by engaging in long-term partnerships with associates that control the retail sector, by providing them with marginal value.
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  1. Economies Of Scale

Another strategy for creating a monopoly for your business is by selling your products in large volume at a lower margin. To sustain market dominance, you must adopt what monopoly companies usually do. For example, you can generally enhance the scale of business which causes a reduction in average cost per unit. This economies of scale strategy discourage competitors to enter the market.

  1. Create Solutions With Unique Technology

To build a monopoly around your business, you must produce solutions that differentiate yours from theirs. Build a company solution and even means of customer service that will serve as a marker for you in the business world. Make a product that is difficult to replicate. This is another form of licensing strategy which allows businesses to create customer loyalty.

  1. Invest In Radical Brand Equity

Good branding is like having a good name. And it is famously opined that a good name is better than money. As a company that desires a monopoly, investing in branding is non-negotiable. There are various methods of doing this, which include positioning your company as a category king. Featured Image Source: Entrepreneur
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