Edward de Bono is a writing machine. He has written over 60 books and invented terms like "lateral thinking". I have a few of his books and was very pleased to pick up a copy of Sur/Petition recently. In it he talks about the value of value monopolies. Unlike commodity economics, value monopolies prevent you from competing with other vendors based on price alone (as is the case in commodity economics).
de Bono describes a number of different "value monopolies" in his book:
- Physical uniqueness. There is only one Mona Lisa. The original can never be replicated. Its market value may rise and fall, but it will always be unique.
- Technological uniqueness. Not just, "first to market" ideas, but the kinds of uniqueness that are enforceable by patents like those found in the pharmaceutical field.
- Name recognition. There are people and there are brand names. Both have a value monopoly because of their "name recognition."
- Dominance. It's easy to be the dominant force if you are already the dominant force.
- Cost of entry. Where the cost of entry is high and requires a continuous injection of development funds, there is protection from newcomers.
- Brand image. Differentiated from "name recognition" brand image includes the circular nature of popularity. Retailers stock a product they think consumers will demand. Because the product is stocked, consumers demand it, thus justifying the retailers' initial purchase of the brand.
- Segmentation. Niche markets are your friend. To have a dominant position in a very small market is not enough. If the market gets bigger others will start poking their nose into your niche.
Is your business successful because it relies on its monopoly? What if you weren't the only one? How would you compel customers to stay with you, and prospects to consider buying from you? If you know and enjoy the lessons behind niche marketing, you may want to pick up a copy of Sur/petition from Edward de Bono for a few more lessons.
