How to Build and Sustain Monopoly Strength the Ethical Way

Hard - Requires significant effort Recommended

Monopoly isn’t about exploiting customers—it’s about doing something so uniquely well that no rival even comes close. Think of your favorite apps: the ones you can’t imagine being without—odds are, they started by serving just a handful of hyperenthusiasts before growing into essential utilities. Airlines, meanwhile, serve millions and make pennies, stuck in fierce competition. Tech leaders usually dominate through a powerful technological advantage, brand loyalty, or tight community—like Apple, which used both design brilliance and a magnetic ecosystem to pull ahead. Behavioral research finds people are drawn to clear leaders, not incremental improvements—being “ten percent better” rarely changes anything, but being “ten times better” often leads to passionate fans. Planning sequentially avoids spreading yourself thin—starting with a small, loyal base and expanding outward ensures every step builds on previous wins.

Think carefully about what you or your team could deliver that’s a genuine leap over what currently exists—it doesn’t have to be for everyone yet, just for a specific group with real needs. Start serving those people with almost obsessive focus, gathering their input and making your solution irresistible. Once you’ve established loyalty in this niche, figure out which nearby groups might benefit next and grow deliberately from there. Remember, pairing relentless technical improvements with a strong story or brand cements your position—and this combo helps you sustain your edge without sacrificing ethics. Reflect on this while making your next to-do list.

What You'll Achieve

Build a lasting, defensible advantage—internally fostering leadership and externally achieving outsize results, recognition, and impact.

Design for Uniqueness and Lasting Value

1

Identify Your 10x Advantage.

Honestly assess where you (or your team, product, or idea) can be at least 10 times better than what’s available—faster, more reliable, more delightful, or more accessible.

2

Start With a Small, Specific Audience.

Focus initial efforts on a tightly defined group whose urgent needs aren’t met by mainstream solutions—think 'robotics club kids' instead of 'all students.'

3

Plan for Growth via Adjacent Markets.

After dominating your first niche, map out related markets you could move into sequentially, never losing your original edge.

4

Balance Technology With Brand and Network.

Complement your innovation with memorable identity, community effects, or scale—ensure you build not just a tool but something people feel part of.

Reflection Questions

  • Where do I deeply outshine average competitors?
  • What small group urgently needs what I can offer?
  • How can I pair technology with emotional resonance (brand, loyalty)?
  • What risks do I avoid by growing deliberately?

Personalization Tips

  • As a baker, perfect gluten-free muffins until they’re unmatched, then expand to offer them to local cafes.
  • For coders, build a niche app for a school’s debate team, then add features for the whole district.
  • In a professional role, specialize in a rare reporting skill before proposing to train other departments.
Zero to One: Notes on Startups, or How to Build the Future
← Back to Book

Zero to One: Notes on Startups, or How to Build the Future

Peter Thiel
Insight 4 of 9

Ready to Take Action?

Get the Mentorist app and turn insights like these into daily habits.