Keep in mind that today the Monopolies are mostly Cartels (“a group of independent market participants, whose goal is to improve their profits and/or Market position by reducing their mutual competition.” Wikipedia).
After millennia of the “competition” regime, in recent decades the big Companies have followed the “easy way”: try to eliminate the competitor. With with various “war” expedients, such as () the strategies of dumping towards competition (“price policies”: keeping prices low to make the other Companies go bankrupt), ● imposing conditions on suppliers (their life depends on Monopolist).
(The perhaps most significant example of Monopoly is that of Amazon, which for many years has been at a loss, but then reached a position that seems unbeatable – an important Cartel today is the Automotive one)
Some of the problems created by the Monopoly:
● Competition was an essential driver of innovation: the traditional Market, creating Monopolies, also created the conditions of the current crisis (and the drastic decrease in sales of the Monopolists).
In fact, people have stopped buying products without real useful qualities created for them with the typical philosophy of the Monopolies CEOs, who are not interested in the real needs of the Customers.
● The Big Companies Monopolists have “armored” the Market against Innovation (also thanks to Cronysm – see next point). Now the walls of their fortress have become the walls of their prison: they are unable to innovate neither their products nor their structures. <see The amrored Market: the resistance to change by the Incumbents has created an armored market with respect to innovation >
● The “war” approach (eliminating competition instead of trying to create products that meet the needs of the customers) of the big Companies has created a mindset in them because of which they no longer have the ability to reason in terms of understanding of the real needs of the Customers (they are not really able to develop the quality necessary to enter the new Market: Empathy with customer). Consequently the big companies are not able to develop strategies based on the new Caring/Sharing Economy that is the basis of Disruptive innovation.
<see The Entrepreneur’s DNA>
