Monopoly Business Quotes

Finally, I decided that the proper strategy was to stare back. Boys do not have a monopoly on the Staring Business.

Monopoly is the condition of every successful business.

Tolstoy opens Anna Karenina by observing: “All happy families are alike; each unhappy family is unhappy in its own way.” Business is the opposite. All happy companies are different: each one earns a monopoly by solving a unique problem. All failed companies are the same: they failed to escape competition.

We had to struggle with the old enemies of peace—business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob. Never before in all our history have these forces been so united against one candidate as they stand today. They are unanimous in their hate for me—and I welcome their hatred.

Like many business men of genius he learned that free competition was wasteful, monopoly efficient.

Finally, I decided that the proper strategy was to stare back. Boys do not have a monopoly on the Staring Business, after all. So I looked him over as Patrick acknowledged for the thousandth time his ball-lessness etc. and soon it was a staring contest. After a while the boy smiled, and then finally his blue eyes glanced away. When he looked back at me, I flicked my eyebrows up to say, I win.

In an effort to eliminate the possibility of any rival growing up, some monopolists would sacrifice democracy itself.

Finally, I decided that the proper strategy was to stare back. Boys do not have a monopoly on the Staring Business, after all. So I looked him over and soon it was a staring contest. After a while the boy smiled, and then finally his blue eyes glanced away. When he looked back at me, I flicked my eyebrows up to say, I win. He shrugged

Boys do not have the monopoly in Staring Business, after all.

For nearly four years you have had an Administration which instead of twirling its thumbs has rolled up its sleeves. We will keep our sleeves rolled up. We had to struggle with the old enemies of peace--business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob.

In the developed countries of the capitalist world, the mass media are beginning to become businesses, and huge businesses at that. The freedom of journalists is now becoming, in most cases, a very relative thing: it ends where the interests of the business begin... In socialist areas, it is enough to recall that the means of social communication are the monopoly of the party.

When industries lack competition, businesses get belligerent. Competition helps keep businesses humble.

You feel ownership over your creation, your invention, and your ideas. But if you don’t legally claim them, you’re donating them to the public—or to competitors. Say you’ve come up with a solution to a problem. Protecting that potentially valuable IP creates a limited monopoly to keep people out. It’s like zone defense in basketball. IP rights help you own your zone—your competitive space where no one else can score. If the best offense is a great defense, then no offense is the worst.

We had to struggle with the old enemies of peace - business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the government of the United States as a mere appendage to their own affairs and we know now that a government by organized money is just as bad as a government by organized mob.

Here is an all-too-brief summary of Buffett’s approach: He looks for what he calls “franchise” companies with strong consumer brands, easily understandable businesses, robust financial health, and near-monopolies in their markets, like H & R Block, Gillette, and the Washington Post Co. Buffett likes to snap up a stock when a scandal, big loss, or other bad news passes over it like a storm cloud—as when he bought Coca-Cola soon after its disastrous rollout of “New Coke” and the market crash of 1987. He also wants to see managers who set and meet realistic goals; build their businesses from within rather than through acquisition; allocate capital wisely; and do not pay themselves hundred-million-dollar jackpots of stock options. Buffett insists on steady and sustainable growth in earnings, so the company will be worth more in the future than it is today.

The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

Any support we get from persons of flesh and blood is like Monopoly money; it’s not legal tender in that sphere where we have to do our work. In fact, the more energy we spend stoking up on support from colleagues and loved ones, the weaker we become and the less capable of handling our business.

Many of the most influential business people in history have gone through persecution - allegations of monopoly or fraud or political manipulation, or other things. To some extent, great persecution comes with great influence.

Competition works best in sports, but humans get addicted to stuff.

The guy was still staring at me. I felt rather blushy. Finally I decided that the proper strategy was to stare back. Boys do not have a monopoly on the Staring Business, after all [...] After awhile the boy smiled, and then finally his blue eyes glanced away. When he looked back at me, I flickered my eyebrows up to say, I win.

Monopoly money; it’s not legal tender in that sphere where we have to do our work. In fact, the more energy we spend stoking up on support from colleagues and loved ones, the weaker we become and the less capable of handling our business.

Buffett's uncommon urge to chronicle made him a unique character in American life, not only a great capitalist but the Great Explainer of American capitalism. He taught a generation how to think about business, and he showed that securities were not just tokens like the Monopoly flatiron, and that investing need not be a game of chance. It was also a logical, commonsensical enterprise, like the tangible businesses beneath. He stripped Wall Street of its mystery and rejoined it to Main Street -- a mythical or disappearing place, perhaps, but one that is comprehensible to the ordinary American.

We have rule of lawyers, not rule of law. The legal profession has a monopoly over one branch of government as it was never intended to. The American Bar Association owns an entire branch of our government. We should not be surprised that we are the most litigious society in the world. It is big business with a stranglehold on one of the three branches of government.

We had to struggle with the old enemies of peace—business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering. They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that government by organized money is just as dangerous as government by organized mob. --Franklin Delano Roosevelt, from a 1936 speech in New York City

The more highly competitive the market for labor and for the employer’s products, the higher the cost paid for discrimination and consequently the less leeway the employer has for indulging his prejudices without risking his own profits and ultimately the financial survival of the business. On the other hand, enterprises not subject to the full stress of a competitive market—monopolies, non-profit enterprises, government agencies—have greater leeway.

If American chemical industries are oligopolistic, British, German, French, Italian, indeed European, chemical industries are monopolistic.

You’ve probably heard about “first mover advantage”: if you’re the first entrant into a market, you can capture significant market share while competitors scramble to get started. But moving first is a tactic, not a goal. What really matters is generating cash flows in the future, so being the first mover doesn’t do you any good if someone else comes along and unseats you. It’s much better to be the last mover—that is, to make the last great development in a specific market and enjoy years or even decades of monopoly profits. The way to do that is to dominate a small niche and scale up from there, toward your ambitious long-term vision. In this one particular at least, business is like chess. Grandmaster José Raúl Capablanca put it well: to succeed, “you must study the endgame before everything else.

Tea Party advocates work in or run small businesses. Yet the politicians they support back laws that consolidate the monopoly power of the very largest companies that are poised to swallow up smaller ones.

I use “anticapitalist” because conservative defenders of capitalism regularly say their liberal and socialist opponents are against capitalism. They say efforts to provide a safety net for all people are “anticapitalist.” They say attempts to prevent monopolies are “anticapitalist.” They say efforts that strengthen weak unions and weaken exploitative owners are “anticapitalist.” They say plans to normalize worker ownership and regulations protecting consumers, workers, and environments from big business are “anticapitalist.” They say laws taxing the richest more than the middle class, redistributing pilfered wealth, and guaranteeing basic incomes are “anticapitalist.” They say wars to end poverty are “anticapitalist.” They say campaigns to remove the profit motive from essential life sectors like education, healthcare, utilities, mass media, and incarceration are “anticapitalist.” In doing so, these conservative defenders are defining capitalism. They define capitalism as the freedom to exploit people into economic ruin; the freedom to assassinate unions; the freedom to prey on unprotected consumers, workers, and environments; the freedom to value quarterly profits over climate change; the freedom to undermine small businesses and cushion corporations; the freedom from competition; the freedom not to pay taxes; the freedom to heave the tax burden onto the middle and lower classes; the freedom to commodify everything and everyone; the freedom to keep poor people poor and middle-income people struggling to stay middle income, and make rich people richer. The history of capitalism—of world warring, classing, slave trading, enslaving, colonizing, depressing wages, and dispossessing land and labor and resources and rights—bears out the conservative definition of capitalism.

The Industrial Revolution started and made its biggest strides in England because of her uniquely inclusive economic institutions. These in turn were built on foundations laid by the inclusive political institutions brought about by the Glorious Revolution. It was the Glorious Revolution that strengthened and rationalized property rights, improved financial markets, undermined state-sanctioned monopolies in foreign trade, and removed the barriers to the expansion of industry. It was the Glorious Revolution that made the political system open and responsive to the economic needs and aspirations of society. These inclusive economic institutions gave men of talent and vision such as James Watt the opportunity and incentive to develop their skills and ideas and influence the system in ways that benefited them and the nation. Naturally these men, once they had become successful, had the same urges as any other person. They wanted to block others from entering their businesses and competing against them and feared the process of creative destruction that might put them out of business, as they had previously bankrupted others.

Whereas once it was the customer who favored the merchant by dealing with him, conditions changed until it was the merchant who favored the customer by selling to him. That is bad for business. Monopoly is bad for business. Profiteering

In the real world outside economic theory, every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.

One of the many signs of verbal virtuosity among intellectuals is the repackaging of words to mean things that are not only different from, but sometimes the direct opposite of, their original meanings. 'Freedom' and 'power' are among the most common of these repackaged words. The basic concept of freedom as not being subjected to other people's restrictions, and of power as the ability to restrict other people's options have both been stood on their heads in some of the repackaging of these words by intellectuals discussing economic issues. Thus business enterprises who expand the public's options, either quantitatively (through lower prices) or qualitatively (through better products) are often spoken of as 'controlling' the market, whenever this results in a high percentage of consumers choosing to purchase their particular products rather than the competing products of other enterprises. In other words, when consumers decide that particular brands of products are either cheaper or better than competing brands of those products, third parties take it upon themselves to depict those who produced these particular brands as having exercised 'power' or 'control.' If, at a given time, three-quarters of the consumers prefer to buy the Acme brand of widgets to any other brand, then Acme Inc. will be said to 'control' three-quarters of the market, even though consumers control 100 percent of the market, since they can switch to another brand of widgets tomorrow if someone else comes up with a better widget, or stop buying widgets altogether if a new product comes along that makes widgets obsolete. ....by saying that businesses have 'power' because they have 'control' of their markets, this verbal virtuosity opens the way to saying that government needs to exercise its 'countervailing power' (John Kenneth Galbraith's phrase) in order to protect the public. Despite the verbal parallels, government power is in fact power, since individuals do not have a free choice as to whether or not to obey government laws and regulations, while consumers are free to ignore the products marketed by even the biggest and supposedly most 'powerful' corporations in the world.

One way was Taylorism. Frederick W. Taylor had been a steel company foreman who closely analyzed every job in the mill, and worked out a system of finely detailed division of labor, increased mechanization, and piecework wage systems, to increase production and profits. In 1911, he published a book on “scientific management” that became powerfully influential in the business world. Now management could control every detail of the worker’s energy and time in the factory. As Harry Braverman said (Labor and Monopoly Capital), the purpose of Taylorism was to make workers interchangeable, able to do the simple tasks that the new division of labor required—like standard parts divested of individuality and humanity, bought and sold as commodities.

Those who oppose reform will do well to remember that ruin in its worst form is inevitable if our national life brings us nothing better than swollen fortunes for the few and the triumph in both politics and business of a sordid and selfish materialism.

Half of the biggest American companies of 1980 have now disappeared by take-over or bankruptcy; half of today’s biggest companies did not even exist in 1980. The same is not true of government monopolies: the Internal Revenue Service and the National Health Service will not die, however much incompetence they might display. Yet most anti-corporate activists have faith in the good will of the leviathans that can force you to do business with them, but are suspicious of the behemoths that have to beg for your business. I find that odd. Moreover,

Our living quarters were in the same compound as the Eastern District administration. Government offices were mostly housed in large mansions which had been confiscated from Kuomintang officials and wealthy landlords. All government employees, even senior officials, lived at their office. They were not allowed to cook at home, and all ate in canteens. The canteen was also where everyone got their boiled water, which was fetched in thermos flasks. Saturday was the only day married couples were allowed to spend together. Among officials, the euphemism for making love was 'spending a Saturday." Gradually, this regimented life-style relaxed a bit and married couples were able to spend more time together, but almost all still lived and spent most of their time in their office compounds. My mother's department ran a very broad field of activities, including primary education, health, entertainment, and sounding out public opinion. At the age of twenty-two, my mother was in charge of all these activities for about a quarter of a million people. She was so busy we hardly ever saw her. The government wanted to establish a monopoly (known as 'unified purchasing and marketing') over trade in the basic commodities grain, cotton, edible o'fi, and meat. The idea was to get the peasants to sell these exclusively to the government, which would then ration them out to the urban population and to parts of the country where they were in short supply.

This brings us to the very ugly truth about regulation: while big businesses often complain about regulation, the truth is that even though it is painful and annoying, they don't mind it and even favor it. Regulations that are burdensome enough to kill small companies but are not strong enough to kill large ones are, in fact, ideal.

We found time for less serious things that summer, such as long hours spent playing games like Monopoly, Parcheesi, and Yacht. Peter came honestly by his honorary title of GGP—abbreviation for Great Game Player, bestowed on him by my young brother and sister. My family thought it would look impressive on his church bulletin—thus, “Peter Marshall, DD, GGP.” The day of our wedding saw a cold rain falling, “an ideal day for staying home and playing games,” Peter said. It was indeed. During the morning, I put the finishing touches to my veil and wrestled with a new influx of wedding gifts swathed in tons of tissue paper and excelsior. I gathered the impression that Peter was rollicking through successive games of Yacht, Parcheesi, and Rummy with anyone who had sufficient leisure to indulge him. That was all right, but I thought he was carrying it a bit too far when, thirty minutes before the ceremony, he was so busy pushing his initial advantage in a game of Chinese Checkers with my little sister Em that he still had not dressed.

Christian missions to India imply that India is a land of heathens, and, therefore, stands on the same level with the Andaman or the Fiji Islands. That a country which has been recognised in all ages the world over as the mother of all religions and the cradle of civilisation should be considered as pagan, shows how much ignorance prevails in Christendom. Since the Parliament of Religions, I have been studying Christian institutions, and I have also studied the way in which the Christian ministers and the missionaries are manufactured in this country, and have learned to pity them. We must not blame them too severely, because their education is too narrow to make them broad-minded. I grant that they are good-hearted, that they are good husbands and often fathers of large families, but generally they are very ignorant, especially of the history of civilisation and of the philosophy of religion of India. Most of them do not even know the history of ancient India. We know that in this age of competition, centralisation, and monopoly, very many people are forced out of business. The English say, 'The fool of the family goes into the Church'; so that when a youth is unable to make a living, he takes to missionary work, goes to India, and helps to introduce among the Hindus the doctrines of his church, which have long since been exploded by science.

So identified has the State become in the public mind with the provision of these services that an attack on State financing appears to many people as an attack on the service itself. Thus if one maintains that the State should not supply court services, and that private enterprise on the market could supply such service more efficiently as well as more morally, people tend to think of this as denying the importance of courts themselves. The libertarian who wants to replace government by private enterprises in the above areas is thus treated in the same way as he would be if the government had, for various reasons, been supplying shoes as a tax-financed monopoly from time immemorial. If the government and only the government had had a monopoly of the shoe manufacturing and retailing business, how would most of the public treat the libertarian who now came along to advocate that the government get out of the shoe business and throw it open to private enterprise? He would undoubtedly be treated as follows: people would cry, “How could you? You are opposed to the public, and to poor people, wearing shoes! And who would supply shoes to the public if the government got out of the business? Tell us that! Be constructive! It’s easy to be negative and smart-alecky about government; but tell us who would supply shoes? Which people? How many shoe stores would be available in each city and town? How would the shoe firms be capitalized? How many brands would there be? What material would they use? What lasts? What would be the pricing arrangements for shoes? Wouldn’t regulation of the shoe industry be needed to see to it that the product is sound? And who would supply the poor with shoes? Suppose a poor person didn’t have the money to buy a pair?” These questions, ridiculous as they seem to be and are with regard to the shoe business, are just as absurd when applied to the libertarian who advocates a free market in fire, police, postal service, or any other government operation. The point is that the advocate of a free market in anything cannot provide a “constructive” blueprint of such a market in advance. The essence and the glory of the free market is that individual firms and businesses, competing on the market, provide an ever-changing orchestration of efficient and progressive goods and services: continually improving products and markets, advancing technology, cutting costs, and meeting changing consumer demands as swiftly and as efficiently as possible.

Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We’ve discussed these elements before. Whatever your industry, any great business plan must address every one of them. If you don’t have good answers to these questions, you’ll run into lots of “bad luck” and your business will fail. If you nail all seven, you’ll master fortune and succeed. Even getting five or six correct might work.

In the real world outside economic theory, every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business. Tolstoy opens Anna Karenina by observing: “All happy families are alike; each unhappy family is unhappy in its own way.” Business is the opposite. All happy companies are different: each one earns a monopoly by solving a unique problem. All failed companies are the same: they failed to escape competition.

The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We

Some have argued that capitalism promotes democracy, because of common norms of transparency, rule of law, and free competition—for markets, for ideas, for votes. In some idealized world, capitalism may enhance democracy, but in the history of the West, democracy has expanded by limiting the power of capitalists. When that project fails, dark forces are often unleashed. In the twentieth century, capitalism coexisted nicely with dictatorships, which conveniently create friendly business climates and repress independent worker organizations. Western capitalists have enriched and propped up third-world despots who crush local democracy. Hitler had a nice understanding with German corporations and bankers, who thrived until the unfortunate miscalculation of World War II. Communist China works hand in glove with its capitalist business partners to destroy free trade unions and to preserve the political monopoly of the Party. Vladimir Putin presides over a rigged brand of capitalism and governs in harmony with kleptocrats. When push comes to shove, the story that capitalism and democracy are natural complements is a myth. Corporations are happy to make a separate peace with dictators—and short of that, to narrow the domain of civic deliberation even in democracies. After Trump’s election, we saw corporations standing up for immigrants and saluting the happy rainbow of identity politics, but lining up to back Trump’s program of gutting taxes and regulation. Some individual executives belatedly broke with Trump over his racist comments, but not a single large company has resisted the broad right-wing assault on democracy that began long before Trump, and all have been happy with the dismantling of regulation. If democracy is revived, the movement will come from empowered citizens, not from corporations.

Not satisfied with controlling information pipelines, the tech oligarchs have been moving to shape content as well. Controllers like those at Facebook and Twitter seek to “curate” content on their sites, or even eliminate views they find objectionable, which tend to be conservative views, according to former employees.35 Algorithms intended to screen out “hate groups” often spread a wider net, notes one observer, since the programmers have trouble distinguishing between “hate groups” and those who might simply express views that conflict with the dominant culture of Silicon Valley.36 That managers of social media platforms aim to control content is not merely the perception of conservatives. Over 70 percent of Americans believe that social media platforms “censor political views,” according to a recent Pew study.37 With their quasi-monopoly status, Facebook and Google don’t have to worry about competing with anyone, as the tech entrepreneur Peter Thiel observes, so they can indulge their own prejudices to a greater extent than the businesses that might be concerned about alienating customers.38 With their tightening control over media content, the tech elite are now situated to exert a cultural predominance that is unprecedented in the modern era.39 It recalls the cultural influence of the Catholic Church in the Middle Ages, but with more advanced technology.

Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that

If...capital is divided between two different grocers, their competition will tend to make both of them sell cheaper, than if it were in the hands of one only; and if it were divided among twenty, their competition would be just so much the greater, and the chance of their combining together, in order to raise the price, just so much the less. Their competition might perhaps ruin some of themselves; but to take care of this is the business of the parties concerned, and it may safely be trusted to their discretion. It can never hurt either the consumer, or the producer; on the contrary, it must tend to make the retailers both sell cheaper and buy dearer, than if the whole trade was monopolized by one or two persons.

if consumer demand should increase for the goods or services of any private business, the private firm is delighted; it woos and welcomes the new business and expands its operations eagerly to fill the new orders. Government, in contrast, generally meets this situation by sourly urging or even ordering consumers to “buy” less, and allows shortages to develop, along with deterioration in the quality of its service. Thus, the increased consumer use of government streets in the cities is met by aggravated traffic congestion and by continuing denunciations and threats against people who drive their own cars. The New York City administration, for example, is continually threatening to outlaw the use of private cars in Manhattan, where congestion has been most troublesome. It is only government, of course, that would ever think of bludgeoning consumers in this way; it is only government that has the audacity to “solve” traffic congestion by forcing private cars (or trucks or taxis or whatever) off the road. According to this principle, of course, the “ideal” solution to traffic congestion is simply to outlaw all vehicles! But this sort of attitude toward the consumer is not confined to traffic on the streets. New York City, for example, has suffered periodically from a water “shortage.” Here is a situation where, for many years, the city government has had a compulsory monopoly of the supply of water to its citizens. Failing to supply enough water, and failing to price that water in such a way as to clear the market, to equate supply and demand (which private enterprise does automatically), New York’s response to water shortages has always been to blame not itself, but the consumer, whose sin has been to use “too much” water. The city administration could only react by outlawing the sprinkling of lawns, restricting use of water, and demanding that people drink less water. In this way, government transfers its own failings to the scapegoat user, who is threatened and bludgeoned instead of being served well and efficiently. There has been similar response by government to the ever-accelerating crime problem in New York City. Instead of providing efficient police protection, the city’s reaction has been to force the innocent citizen to stay out of crime-prone areas. Thus, after Central Park in Manhattan became a notorious center for muggings and other crime in the night hours, New York City’s “solution” to the problem was to impose a curfew, banning use of the park in those hours. In short, if an innocent citizen wants to stay in Central Park at night, it is he who is arrested for disobeying the curfew; it is, of course, easier to arrest him than to rid the park of crime. In short, while the long-held motto of private enterprise is that “the customer is always right,” the implicit maxim of government operation is that the customer is always to be blamed.

Apple has always insisted on having a hardware monopoly, except for a brief period in the mid-1990s when they allowed clone-makers to compete with them, before subsequently putting them out of business. Macintosh hardware was, consequently, expensive. You didn’t open it up and fool around with it because doing so would void the warranty. In fact, the first Mac was specifically designed to be difficult to open—you needed a kit of exotic tools, which you could buy through little ads that began to appear in the back pages of magazines a few months after the Mac came out on the market. These ads always had a certain disreputable air about them, like pitches for lock-picking tools in the backs of lurid detective magazines.

In country after country where local moneys were abolished in favor of interest-bearing central currency, people fell into poverty, health declined, and society deteriorated12 by all measures. Even the plague can be traced to the collapse of the marketplace of the late Middle Ages and the shift toward extractive currencies and urban wage labor. The new scheme instead favored bigger players, such as chartered monopolies, which had better access to capital than regular little businesses and more means of paying back the interest. When monarchs and their favored merchants founded the first corporations, the idea that they would be obligated to grow didn’t look like such a problem. They had their nations’ governments and armies on their side—usually as direct investors in their projects. For the Dutch East India Company to grow was as simple as sending a few warships to a new region of the world, taking the land, and enslaving its people. If this sounds a bit like the borrowing advantages enjoyed today by companies like Walmart and Amazon, that’s because it’s essentially the same money system in operation, favoring the same sorts of players. Yet however powerful the favored corporations may appear, they are really just the engines through which the larger money system extracts value from everyone’s economic activity. Even megacorporations are like competing apps on a universally accepted, barely acknowledged smartphone operating system. Their own survival is utterly dependent on their ability to grow capital for their debtors and investors.

In fact, as these companies offered more and more (simply because they could), they found that demand actually followed supply. The act of vastly increasing choice seemed to unlock demand for that choice. Whether it was latent demand for niche goods that was already there or a creation of new demand, we don't yet know. But what we do know is that the companies for which we have the most complete data - netflix, Amazon, Rhapsody - sales of products not offered by their bricks-and-mortar competitors amounted to between a quarter and nearly half of total revenues - and that percentage is rising each year. in other words, the fastest-growing part of their businesses is sales of products that aren't available in traditional, physical retail stores at all. These infinite-shelf-space businesses have effectively learned a lesson in new math: A very, very big number (the products in the Tail) multiplied by a relatives small number (the sales of each) is still equal to a very, very big number. And, again, that very, very big number is only getting bigger. What's more, these millions of fringe sales are an efficient, cost-effective business. With no shelf space to pay for - and in the case of purely digital services like iTunes, no manufacturing costs and hardly any distribution fees - a niche product sold is just another sale, with the same (or better) margins as a hit. For the first time in history, hits and niches are on equal economic footing, both just entries in a database called up on demand, both equally worthy of being carried. Suddenly, popularity no longer has a monopoly on profitability.

In the case of patentable ideas such as the wheelbarrow, the idea of unpriced spillovers is more plausible. Yet there is no reason to believe that it is of practical importance. Indeed, there is a modern example of the wheelbarrow – that of Travelpro – the inventor of the modern wheeled roll-on suitcase with a retractable handle. Obviously such an idea can not both be useful and be secret – and once you see a wheeled roll-on suitcase it is not difficult to figure out how to make one of your own. Needless to say, Travelpro was quickly imitated – and so quickly you probably have never even heard of Travelpro. Never-the-less – despite their inability to garner an intellectual monopoly over their invention – they found it worthwhile to innovate – and they still do a lucrative business today, claiming “425,000 Flight Crew Members Worldwide Choose Travelpro Luggage.

The Age of Affluence represents a daring experiment on the part of elites in maintaining their dominance not by starving and bludgeoning their opposition into submission, but by seducing it into compliance. […] totalitarianism is perfected because its techniques become progressively more subliminal. The distinctive feature of the regime of experts lies in the fact that, while possessing ample power to coerce, it prefers to charm conformity from us […] The prime strategy of the technocracy is to level life down to a standard of so-called living that technical expertise can cope with–and then, on that false and exclusive basis, to claim an intimidating omnicompetence over us by its monopoly of the experts. The business of investing and flourishing treacherous parodies of freedom, joy, and fulfillment becomes an indispensable form of social control under the technocracy.

It is certainly true that imitation is everywhere, from sport to business, from dancing to dressing, from driving to singing. In fact, imitation is at the heart of competitive behavior and of almost any kind of social interaction. Like the fixed cost cum marginal cost argument that, as we pointed out earlier, is so powerful an argument that it can be applied to any and every thing, imitation is so widespread that, when taken literally, it is also everywhere. By this token one should see unpriced externalities in every market where producers imitate each other, thereby concluding that all kinds of economic activities should be allowed some form of monopoly power. Restaurants imitate each other, as coffee shops, athletes, real estate agents, car salesmen, and even bricklayers do, but we would certainly find it foolhardy to grant to a firm in each of these businesses monopoly power over one technique or another. This suggests that equating imitation with unpriced externalities leads us into a dark night in which all cows are gray.

Mafiosi, for Franchetti, were entrepreneurs in violence, specialists who had developed what today would be called the most sophisticated business model in the marketplace. Under the leadership of their bosses, mafia bands ‘invested’ violence in various commercial spheres in order to extort protection money and guarantee monopolies. This was what he called the violence industry. As Franchetti wrote, [in the violence industry] the mafia boss . . . acts as capitalist, impresario and manager. He unifies the management of the crimes committed . . . he regulates the way labour and duties are divided out, and controls discipline amongst the workers. (Discipline is indispensable in this as in any other industry if abundant and constant profits are to be obtained.) It is the mafia boss’s job to judge from circumstances whether the acts of violence should be suspended for a while, or multiplied and made fiercer. He has to adapt to market conditions to choose which operations to carry out, which people to exploit, which form of violence to use.

In 1940, Fabian socialist H. G. Wells wrote his own The New World Order, popularizing the phrase. The book advocated unification of the nations of the world to end war and bring global peace. Since the late eighteenth century, when the Illuminati first called for the New World Order, many globalists have openly advocated its creation, including President Woodrow Wilson, Vice President Nelson Rockefeller, Secretary of State Henry Kissinger, President George H. W. Bush, British prime minister Tony Blair, Soviet leader Mikhail Gorbachev, banker David Rockefeller, and Vice President Joe Biden. “The world’s elite deal in only one commodity—power,” Marrs wrote in The Rise of the Fourth Reich: The Secret Societies That Threaten to Take Over America. “They seek to gain and maintain the controlling power that comes from great wealth, usually gained through the monopoly of ownership over basic resources. Politics and social issues matter little to the globalist ruling elite, who move smoothly between corporate business and government service… It is this unswerving attention to commerce and banking that lies behind nearly all modern events. It is the basis for a ‘New World Order’ mentioned by both Hitler and former President George H. W. Bush.”19 Over the last century, the elite have engaged in a massive, covert campaign to prepare humanity for the New World Order.

The Memory Business Steven Sasson is a tall man with a lantern jaw. In 1973, he was a freshly minted graduate of the Rensselaer Polytechnic Institute. His degree in electrical engineering led to a job with Kodak’s Apparatus Division research lab, where, a few months into his employment, Sasson’s supervisor, Gareth Lloyd, approached him with a “small” request. Fairchild Semiconductor had just invented the first “charge-coupled device” (or CCD)—an easy way to move an electronic charge around a transistor—and Kodak needed to know if these devices could be used for imaging.4 Could they ever. By 1975, working with a small team of talented technicians, Sasson used CCDs to create the world’s first digital still camera and digital recording device. Looking, as Fast Company once explained, “like a ’70s Polaroid crossed with a Speak-and-Spell,”5 the camera was the size of a toaster, weighed in at 8.5 pounds, had a resolution of 0.01 megapixel, and took up to thirty black-and-white digital images—a number chosen because it fell between twenty-four and thirty-six and was thus in alignment with the exposures available in Kodak’s roll film. It also stored shots on the only permanent storage device available back then—a cassette tape. Still, it was an astounding achievement and an incredible learning experience. Portrait of Steven Sasson with first digital camera, 2009 Source: Harvey Wang, From Darkroom to Daylight “When you demonstrate such a system,” Sasson later said, “that is, taking pictures without film and showing them on an electronic screen without printing them on paper, inside a company like Kodak in 1976, you have to get ready for a lot of questions. I thought people would ask me questions about the technology: How’d you do this? How’d you make that work? I didn’t get any of that. They asked me when it was going to be ready for prime time? When is it going to be realistic to use this? Why would anybody want to look at their pictures on an electronic screen?”6 In 1996, twenty years after this meeting took place, Kodak had 140,000 employees and a $28 billion market cap. They were effectively a category monopoly. In the United States, they controlled 90 percent of the film market and 85 percent of the camera market.7 But they had forgotten their business model. Kodak had started out in the chemistry and paper goods business, for sure, but they came to dominance by being in the convenience business. Even that doesn’t go far enough. There is still the question of what exactly Kodak was making more convenient. Was it just photography? Not even close. Photography was simply the medium of expression—but what was being expressed? The “Kodak Moment,” of course—our desire to document our lives, to capture the fleeting, to record the ephemeral. Kodak was in the business of recording memories. And what made recording memories more convenient than a digital camera? But that wasn’t how the Kodak Corporation of the late twentieth century saw it. They thought that the digital camera would undercut their chemical business and photographic paper business, essentially forcing the company into competing against itself. So they buried the technology. Nor did the executives understand how a low-resolution 0.01 megapixel image camera could hop on an exponential growth curve and eventually provide high-resolution images. So they ignored it. Instead of using their weighty position to corner the market, they were instead cornered by the market.

The Federal Reserve The Federal Reserve Bank was founded in 1913. Most people think that this bank is an American Federal Company. That is just as wrong as the conviction that the Bank of England belongs to the British Crown or to the whole of England. The Federal Reserve is in the hands of the Rothschilds and company. In his speech before the Senate, on December 15, 1987, Senator Jesse Helms said: “The principal instrument of the control over the American economy and money is the Federal Reserve System.” The Federal Reserve has a monopoly over the expenditure of the dollar as a world currency and determining the interest rate, and it disposes of a lot more monopolies. How does the Federal Reserve Bank operate? Suppose the United States government needs a couple of billion dollars for its expenses that cannot be paid with taxes income. At that moment it addresses the Federal Reserve Board. Then government bonds for the needed billion dollars are printed in the Bureau of Printing and Engraving. After these bonds are handed over to the bankers of the Federal Reserve, the board grants a loan to the government in the amount of the bond issue. The Federal Reserve draws interest from the government from the day the bonds are delivered. From that day on the government is allowed to draw checks against the Federal Reserve for the amount of the bonds. What are the consequences of this incredible transaction? The government simply saddles the people with a billion dollar debt to the Federal Reserve Bank, apart from the interest on interest that also has to be paid by “ordinary people”. What does the Federal Reserve have to say about “their” money? “Neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper, deposits merely book entries.”[76] When the Federal Reserve needs new, or more, currency to transact its business, it takes the bonds over to the United States Treasury for safekeeping and asks the Treasury Department for the billions of dollars of new currency it needs. The Bank is accommodated on condition that it will pay the printing bill. It only pays for the expenditure costs of the banknotes, which are no more than a mere 500 dollars for ink and paper!

First problem: To produce wealth. Second problem: To share it. The first problem contains the question of labor. The second contains the question of salary. In the first problem the employment of forces is in question. In the second, the distribution of enjoyment. From the proper employment of forces results public power. From a good distribution of enjoyments results individual happiness. By a good distribution, not an equal but an equitable distribution must be understood. From these two things combined, the public power without, individual happiness within, results social prosperity. Social prosperity means the man happy, the citizen free, the nation great. England solves the first of these two problems. She creates wealth admirably, she divides it badly. This solution which is complete on one side only leads her fatally to two extremes: monstrous opulence, monstrous wretchedness. All enjoyments for some, all privations for the rest, that is to say, for the people; privilege, exception, monopoly, feudalism, born from toil itself. A false and dangerous situation, which sates public power or private misery, which sets the roots of the State in the sufferings of the individual. A badly constituted grandeur in which are combined all the material elements and into which no moral element enters. Communism and agrarian law think that they solve the second problem. They are mistaken. Their division kills production. Equal partition abolishes emulation; and consequently labor. It is a partition made by the butcher, which kills that which it divides. It is therefore impossible to pause over these pretended solutions. Slaying wealth is not the same thing as dividing it. The two problems require to be solved together, to be well solved. The two problems must be combined and made but one. …Solve the two problems, encourage the wealthy, and protect the poor, suppress misery, put an end to the unjust farming out of the feeble by the strong, put a bridle on the iniquitous jealousy of the man who is making his way against the man who has reached the goal, adjust, mathematically and fraternally, salary to labor, mingle gratuitous and compulsory education with the growth of childhood, and make of science the base of manliness, develop minds while keeping arms busy, be at one and the same time a powerful people and a family of happy men, render property democratic, not by abolishing it, but by making it universal, so that every citizen, without exception, may be a proprietor, an easier matter than is generally supposed; in two words, learn how to produce wealth and how to distribute it, and you will have at once moral and material greatness; and you will be worthy to call yourself France.

Though it’s hard to believe now, newspapers were once the envy of the business world. Through the eighties and nineties, 20, 30, even 40 percent returns on investment were not uncommon, triple the norm for U.S. industry over the same period. Dollar signs in their eyes, chains devoured up local papers, consolidating and centralizing to maximize shareholder value, sometimes purchasing vibrant independent publications just to kill off competition. The overlords of monopoly journalism became increasingly disconnected from the communities they were supposed to serve. And when profits plateaued, they gutted themselves to maintain growth, trimming staff, reducing reporting budgets, and publishing fluff. Today, newspaper chiefs prefer to point fingers at new technology or distracted readers or even their own staff, but the erosion of standards and depth owes more to their long greedy binge than to the Internet or the rise of blogging or social media.

Once Microsoft lost its grip on developers, it became only a matter of time before it lost its monopoly on operating systems.

1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see? We’ve discussed these

the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

Most cleantech companies crashed because they neglected one or more of the seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

poor or the owners of small capitals enjoy scarce any, but are liable, under the pretence of justice, to be pillaged and plundered at any time by the inferior mandarins, the quantity of stock employed in all the different branches of business transacted within it can never be equal to what the nature and extent of that business might admit. In every different branch, the oppression of the poor must establish the monopoly of the rich, who, by engrossing the whole trade to themselves, will be able to make very large profits.

Monopolists can afford to think about things other than making money; non-monopolists can’t. In perfect competition, a business is so focused on today’s margins that it can’t possibly plan for a long-term future. Only one thing can allow a business to transcend the daily brute struggle for survival: monopoly profits.

Think about how Google talks about its business. It certainly doesn’t claim to be a monopoly.

Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.

That law that created the native corporations was the idea of tanik American corporations to undermine tribal integrity.” “What do you mean?” Bertie asks. “Everywhere else in the U.S., tribes have their own government, their own land, and their own money.” “They have a monopoly on casinos, you mean,” Bertie says cautiously. “Whatever it is. Our tribes in Alaska don’t have nothing. It’s the native corporations who have all the land and the money, and they’re the ones making decisions.” “But don’t you think they’re making decisions in the best interests of their shareholders, the native people?” “They’re just making money for their shareholders like any other corporation,” Mandy says. “And they hire taniks in Anchorage offices to carry out their business. They don’t care about whether people up here are taking their dividends and drinking them away. I hate to say it, but I got to agree with Luther. It’s a long, slow genocide, all done under the corporations’ laws.

Monopolists can afford to think about things other than making money; non-monopolists can’t. In perfect competition, a business is so focused on today’s margins that it can’t possibly plan for a long-term future. Only one thing can allow a business to transcend the daily brute struggle for survival: monopoly profits.

It is a mature business, and few fortunes are made in mature industries, unless you are lucky enough to create a monopoly in one. I was luckier than I knew. So

The Modus Operandi of THE REGULUS CONCLAVE as spelled out in 1853! “We hold such and such opinions upon one point only; and that one point is, mutual interest, and under that; 1st, that we can govern this nation; 2d, that to govern it, we must, subvert its institutions; and, 3d, subvert them we will! It is our interest; this is our only bond. Capital must have expansion. This hybrid republicanism saps the power of our great agent by its obstinate competition. We must demoralize the republic. We must make public virtue a by-word and a mockery, and private infamy to be honor. Beginning with the people, through our agents, we shall corrupt the State. “We must pamper superstition, and pension energetic fanaticism—as on ’Change we degrade commercial honor, and make success the idol. We may fairly and reasonably calculate, that within a succeeding generation, even our theoretical schemes of republican subversion may be accomplished, and upon its ruins be erected that noble Oligarchy of caste and wealth for which we all conspire, as affording the only true protection to capital. “Beside these general views, we may in a thousand other ways apply our combined capital to immediate advantage. We may buy up, through our agents, claims upon litigated estates, upon confiscated bonds, mortgages upon embarrassed property, land-claims, Government contracts, that have fallen into weak hands, and all those floating operations, constantly within hail, in which ready-money is eagerly grasped as the equivalent for enormous prospective gains. “In addition, through our monopoly of the manufacturing interest, by a rigorous and impartial system of discipline, we shall soon be able to fill the masses of operators and producers with such distrust of each other, and fear of us, as to disintegrate their radical combinations, and bring them to our feet. Governing on ’Change, we rule in politics; governing in politics, we are the despots in trade; ruling in trade, we subjugate production; production conquered, we domineer over labor. This is the common-sense view of our interests—of the interests of capital, which we represent. In the promotion of this object, we appoint and pension our secret agents, who are everywhere on the lookout for our interests. We arrange correspondence, in cipher, throughout the civilized world; we pension our editors and our reporters; we bribe our legislators, and, last of all, we establish and pay our secret police, local, and travelling, whose business it is, not alone to report to us the conduct of agents already employed, but to find and report to us others, who may be useful in such capacity. “We punish treachery by death!” (from YIEGER'S CABINET or SPIRITUAL VAMPIRISM, published 1853)

seven questions that every business must answer: 1. The Engineering Question Can you create breakthrough technology instead of incremental improvements? 2. The Timing Question Is now the right time to start your particular business? 3. The Monopoly Question Are you starting with a big share of a small market? 4. The People Question Do you have the right team? 5. The Distribution Question Do you have a way to not just create but deliver your product? 6. The Durability Question Will your market position be defensible 10 and 20 years into the future? 7. The Secret Question Have you identified a unique opportunity that others don’t see?

two well-recognized economic principles. First, the firmer the monopolistic controls in a given market, the higher the prices. Second, monopoly prices are discriminatory prices. "Charging all the traffic will bear" does not mean that all the traffic will bear the same charge! In fact, it will not.

The Federal Trade Commission, a U.S. regulatory agency, was investigating Microsoft for possible violations of laws aimed at limiting abusive monopolies. This pained Gates, who felt he was simply a victim of his great success. “I don’t think the rich get much credit for anything,” he said. His own experience, he felt, bore this out. Just a few years earlier, he had been celebrated as the scrappy entrepreneur who courageously carved a thriving business from the technological wilderness ignored by entrenched powers. Now he was a maligned bully who wanted to own the entire software universe; a greedy man who thumbed his nose at both customers and competitors. Which

As the barriers that used to protect incumbents from the forces of creative destruction crumble and fall, once-great companies increasingly find themselves on the defensive. Turns out a lot of companies weren’t quite as invincible as they thought they were—and were overly dependent on customer ignorance, distribution monopolies, knowledge asymmetries, and other fast-disappearing sources of economic friction. In this hyper-dynamic, hyper-competitive environment, every organization is either going forwards or going backwards—there’s no standing still. Getting better is no longer enough; today, a company must be capable of getting different—of proactively challenging and changing the fundamental assumptions that underlie its business model. Problem is, the legacy management processes found in most organizations do little to serve the cause of proactive change. Building organizations that are deeply adaptable, that are innovative at their core, and that are engaging, exciting places to work—building healthy organizations—requires some deep rethinking about how we put our organizations together.

Both the law and business have long recognized the propriety of quantity discounts. But since 1914 the Clayton Act has banned price discrimination "when the effect may be to substantially lessen competition or tend to create a monopoly." And since 1936 the Robinson-Patman Act has recognized such quantity discounts as legal only if they represent a saving in cost, and the law places the burden of proof on the seller.

every business is successful exactly to the extent that it does something others cannot. Monopoly is therefore not a pathology or an exception. Monopoly is the condition of every successful business.

a great business is defined by its ability to generate cash flows in the future. Investors expect Twitter will be able to capture monopoly profits over the next decade, while newspapers’ monopoly days are over.

It’s a myth that “predatory pricing” exploited American consumers and created business monopolies. ★ Thanks to government subsidies, many of America’s railroads were often laid on inefficient, circuitous routes. ★ Rockefeller, Carnegie, Dow, and other great American businessmen did more for America than all the big-government programs combined.

Westcliff turned to the black-haired man beside him. “Hunt, I would like to introduce Matthew Swift—the American I mentioned to you earlier. Swift, this is Mr. Simon Hunt.” They shook hands firmly. Hunt was five to ten years older than Matthew and looked as if he could be mean as hell in a fight. A bold, confident man who reputedly loved to skewer pretensions and upper-class affectations. “I’ve heard of your accomplishments with Consolidated Locomotive Works,” Matthew told Hunt. “There is a great deal of interest in New York regarding your merging of British craftsmanship with American manufacturing methods.” Hunt smiled sardonically. “Much as I would like to take all the credit, modesty compels me to reveal that Westcliff had something to do with it. He and his brother-in-law are my business partners.” “Obviously the combination is highly successful,” Matthew replied. Hunt turned to Westcliff. “He has a talent for flattery,” he remarked. “Can we hire him?” Westcliff’s mouth twitched with amusement. “I’m afraid my father-in-law would object. Mr. Swift’s talents are needed to built a factory and start a company office in Bristol.” Matthew decided to nudge the conversation in a different direction. “I’ve read of the recent movement in Parliament for nationalization of the British railroad industry,” he said to Westcliff. “I would be interested in hearing your thoughts on the matter, my lord.” “Good God, don’t get him started on that,” Hunt said. The subject caused a scowl to appear on Westcliff’s brow. “The last thing the public needs is for government to take control of the industry. God save us from yet more interference from politicians. The government would run the railroads as inefficiently as they do everything else. And the monopoly would stifle the industry’s ability to compete, resulting in higher taxes, not to mention—” “Not to mention,” Hunt interrupted slyly, “the fact that Westcliff and I don’t want the government cutting into our future profits.” Westcliff gave him a stern glance. “I happen to have the public’s best interest in mind.” “How fortunate,” Hunt commented, “that in this case what is best for the public also happens to be best for you.” Matthew bit back a smile. Rolling his eyes, Westcliff told Matthew, “As you can see, Mr. Hunt overlooks no opportunity to mock me.” “I mock everyone,” Hunt said. “You just happen to be the most readily available target.

Monopoly without monopolizing is awesome business.

But possession of this psychological high ground is different from a monopoly in any normal sense of that word, because here the dominance has nothing to do with technical performance or price. The old robber-baron monopolies were monopolies because they physically controlled means of production and/or distribution. But in the software business, the means of production is hackers typing code, and the means of distribution is the Internet, and no one is claiming that Microsoft controls those.

In this scenario, ten years from now, if the tech giants are not restrained and their power as data-monopolies becomes further entrenched, governments will find themselves increasingly sidelined and impotent. Reduced to mere gatekeepers, politicians and civil servants will likely retreat behind algorithmic government, with laws shaped by data and machine learning, with all its inherent biases and imperfections, and public services gradually surrendered to private businesses. Indeed, we should expect just about every area of human existence, currently managed by government, to be dominated by Big Tech and its outriders: from the future of finance (just about everyone), to healthcare (Google), and from low-cost housing (Apple, Google) to education (Google, again) and autonomous vehicles (Tesla, Alphabet, Amazon, Apple, etc.).

Another example of how blitzscaling applies to a completely different type of business is the rapid rise of the shale oil and natural gas industry in the United States during the 2000s. The energy sector scores well on the growth factors we’ve defined. Oil and gas is an enormous, high-margin industry, with a very efficient distribution system. And while the shale industry doesn’t feature many network effects, it has its own source of powerful long-term competitive advantage. In the energy industry, rather than buy land outright, the usual practice is to lease the drilling rights for ninety-nine years for a combination of guaranteed lease payments and royalties. This means that leasing the right land is tantamount to holding an unbreakable monopoly on the oil and gas underneath that land,

Network-based businesses tend to create natural monopolies and oligopolies.

It processes more than half a trillion dollars annually—five times more than the country’s second-biggest system, Tencent’s Tenpay, and over 20 times more than China UnionPay, the state-owned body with a monopoly over China’s bank card authorization network.

As you study the sources of growth and profit, stay on the lookout for positives as well as negatives. Among the good signs: The company has a wide “moat,” or competitive advantage. Like castles, some companies can easily be stormed by marauding competitors, while others are almost impregnable. Several forces can widen a company’s moat: a strong brand identity (think of Harley Davidson, whose buyers tattoo the company’s logo onto their bodies); a monopoly or near-monopoly on the market; economies of scale, or the ability to supply huge amounts of goods or services cheaply (consider Gillette, which churns out razor blades by the billion); a unique intangible asset (think of Coca-Cola, whose secret formula for flavored syrup has no real physical value but maintains a priceless hold on consumers); a resistance to substitution (most businesses have no alternative to electricity, so utility companies are unlikely to be supplanted any time soon).

The East India Company ensured that both growing opium and selling it were to be British government monopolies. The facts were laid out in an 1838 account: Throughout all the territories within the Company’s jurisdiction, the cultivation of the poppy, the preparation of the drug, and the traffic in it, […] are under a strict monopoly…the growing of opium is compulsory on the part of the ryot. Advances are made by Government through its native servants, and if a ryot refuses the advance, ‘the simple plan of throwing the rupees into his house is adopted; should he attempt to abscond, the peons seize him, tie the advance up in his clothes, and push him into his house. The business being now settled, and there being no remedy, he applies himself, as he may, to the fulfilment of his contract…’14 The evils which the cultivation of opium entails upon our fellow-subjects in India, arise partly from the ryots in the opium districts of Patna and Benares being compelled to give up fixed portions of their lands for the production of the poppy.

We live in an era where loyalty programmes have become a commodity, an era where trust and confidence in business leadership has collapsed, an era where are no monopolies, an era where customer choice is rampant, an era where taking for granted even one single customer is a huge risk. We live in an era where, owing to enabling technology, customers are now in control forever, at the touch of their computer keyboards able to punish you and potentially destroy what you have spent years building

The beauty of FIFA’s business is that it’s a monopoly. There is only one World Cup (nobody has ever credibly attempted to start a rival event) and only one global soccer association.

It was the “parent of the great monopolies which at present masquerade under the new-found name of ‘Trusts,’ ” said one newspaper, and it served as shorthand for the new agglomerations of economic power. A business system based on individual enterprise was creating combinations of monstrous size that seemed to threaten that individualism. And modern industry not only menaced small-scale commerce but appeared to constitute a sinister despotism that endangered democracy itself as giant corporations overshadowed government as the most dynamic force in American society.

software was “eating” a larger piece of the economic pie every day.1 Andreessen was right—software companies were already playing an enormous role in our economy. But classifying all of these new businesses simply as software companies would be like classifying every business in the Industrial Revolution as a hardware company. It doesn’t tell you much about what these companies do or how they work. And, more important, it doesn’t tell you much about how software is changing the way businesses succeed and grow.

Net neutrality proponents rightly focus on Internet service providers like Comcast, who provide and maintain the underlying technological infrastructure, as the biggest threat to a free and open Internet. And at an architectural level, the Internet is still a fairly level playing field. Anyone can start and build a business online. But as a practical matter, the open Internet is a myth. The Internet as we know it today is almost entirely dominated by platforms.

China’s Internet also is dominated by platforms. Platform businesses hold each of the top eight spots in Chinese Web traffic rankings. And these companies play an even more dominant role in China’s economy than platforms do in the United States.

Whether you’re building a platform business or not, you can’t succeed in this economic environment without understanding how platforms work.

Companies like Pets.com made the mistake of choosing a linear business model in the age of the platform.

Companies like Pets.com made the mistake of choosing a linear business model in the age of the platform. What is a linear business model? It’s the model that has dominated in various forms since the Industrial Revolution, when new technologies like steam power and railways gave rise to the large, vertically integrated organization.