Zero to One Startup Flashcards
Perfect Competition Vs. Monopoly
Perfect Competion- occurs when you create an undiffrentiated business»>more competition»>lots of competitors and no profit
Monopoly- Diffrentiated business»>close to or the only business standing»>competitive advantage over others»make up a large portion/majority of the market share»>make the most profit
Mistakes people make:
They create businesses that do not contain are unique and differentiated but consist of a market that is not in high customer demand ex: gluten free, nut free, sugar free candy bars, or south indian restaurant for tourists in Italy.
Monopoly capitalism
- Monopoly’s are good because they gain enough money to finance innovation
- Encourage other startups to innovate more to replace them
- buy out competition which has more innovative products
Competition is bad
- causes firms to spend too much of their money on copy cat products. Their income is divided between themselves and their competitors
- If you can’t beat competition you should join them
- If you know you can win against your competitiors you should compete with them but only if you know you are going to win and that the competition battle will be short.
Char. of a monopoly
Proprietary tech-make it 10 times better than that currently on market ex: amazon and books.
- lisence beverage to bars
- make it more absorbable
- add alchol infusion and cbd opportunities
- weed into alchol opportunity + no hangover
Networking-make sure that everyone you know starts using the product before branching out more and more people»>ex: why use facebook when your friends are using snapchat and twitter
Branding-sales services, logo design, style of products and services, charismatic appeal of service ex: apple computers
Building a monopoly
Start with a small niche before expanding into adjacent markets Ex: start with selling beverage based marrujana to pot loving young people through dispenseries before expanding into adjacent markets
