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    Zero To One - Peter Thiel-6

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    Uswatul Hanifah

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    Zero To One - Peter Thiel-6

    Uploaded by

    Uswatul Hanifah
    2 views1 page

    Original Title

    Zero to One_Peter Thiel-6

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    Copyright:

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    2 views1 page

    Zero To One - Peter Thiel-6

    Uploaded by

    Uswatul Hanifah

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    The importance of moving away from the idea of healthy

    competition is that competition means there will be no capital left


    for you. The rest of the capital ‘pie’ will be eaten by your
    competitors. Therefore, Peter emphasizes the importance of
    building a monopoly.

    Building a Monopoly
    Creative monopolists give customers more choices by adding
    entirely new categories of products. Microsoft had a giant monopoly
    in operating systems. Simultaneously, Apple’s iOS & Google’s
    Android emerged and overtook operating system dominance
    through a new approach. Monopolies develop our society, while
    competition just leaves us fighting over the same ideas and
    products.

    Peter describes four characteristics that define durable


    monopolists:

    1. Proprietary technology
    2. Network effects (aka virality)
    3. Simple scalability
    4. Branding

    Peter suggests that you attempt to incorporate each of these


    features into your startup. On top of this, Peter has two tips for
    achieving substantial growth by using a monopolization system:

    1. Start small and monopolize – It’s always a red flag when


    entrepreneurs talk about getting 1% of a $100 billion market.
    Huge markets like this will be near-impossible to infiltrate.
    Therefore, that 1% is far harder to reach than people expect.
    Additionally, even if you do succeed in gaining a small foothold,
    you’ll have to be satisfied with the stress of cutthroat
    competition and the likelihood of low-profit margins. With
    competition, your prices will be driven down. In comparison,
    once you create and dominate a niche market, you are in a
    stronger position. You can then gradually expand into related
    and slightly broader markets.
    2. Don’t disrupt – Directly challenging large competitors will
    reduce your profits. Peter provides the example of Napster vs.
    U.S. recording industry. Peter also provides personal insight

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