“Monopoly is the situation where a single company sells a particular product or service. There are few products or services that are available only with a single seller. Monopoly is simply defined as absence of competition.
It could be because the company has got the product patented. There could also be a monopoly if the company is technologically so advanced that it lacks competitors or it could be simply ruling the market due to the superior quality of its goods or services. There are also natural monopolies. For example, if a particular natural resource is found in a particular area. That naturally makes some more privileged than others for that particular business.
Competition might have different barriers to its entry in the market. Some brands are so well established that standing in competition with those would require some concrete base. Nobody is going for a similar product or service from a new brand when an established brand already exists for that product or service. You may find a few customers, trying to save a few bucks, if your prices are low, but making a mark would be tough. Sometimes, monopoly gives the company the liberty to produce inferior quality or high priced products. Sometimes, monopoly can be illegal, but there are ways to attain a monopoly in the market which is fully legal and ethical.
To have a monopolistic business, you need to have something unique with yourself that you can share with the world. It could be a new invention, a new product. One may even think of buying the rights of some newly invented technology for your product. But these days, even ideas sell. It doesn’t always have to be a product. Next you look for a market. Identify the target customers and the geographical areas where you can find more of them. You can try to get exclusive right of sale of that product or service in those areas.
It is advisable to get a lawyer to make sure that the monopolistic business model of yours does not conflict with any of the government laws and policies. This could help in preventing hassles later. If you look at the history, you will notice that companies following monopolistic business models seem to attract more of legal challenges than other business models. Some are of the view that it is unethical to have a monopoly in the first place. Be prepared for these. Do not think of misusing the monopoly. If you keep the prices reasonable, it would cut down competition and your business will last longer. People do not mind paying the price if the quality is good enough. There have been monopolies that people love.”