How to monopolize an industry
I think what you need to ask is the emergence of monopoly. In fact, it is mainly the following aspects that will produce monopoly. You can compare and refer to it yourself. (1) Legal Barriers Some exclusive commercial privileges are stipulated and protected by law, while patent rights and copyrights are monopolies permitted by law. In order to encourage invention, most countries have patent laws, which shows that patent monopoly is caused by legal barriers. In some cases, the government grants exclusive rights to manufacturers; Sometimes the government grants the privilege of exclusive operation by bidding for contracts after competition. (2) Economies of scale and natural monopoly If a product needs a lot of investment in fixed equipment, and mass production can greatly reduce the cost, then a large manufacturer may become the only manufacturer in the industry. When a large manufacturer supplies all the market demand, the average cost is the lowest, and it is difficult for two or more manufacturers to make a profit in this market. In this case, the manufacturer has formed a natural monopoly. (3) Technology and Strategic Monopoly If no one except the monopolist has a certain production technology or know-how, the market will naturally form a technology monopoly. In the absence of technical barriers and legal barriers, manufacturers build barriers to establish or consolidate their monopoly position, which is strategic monopoly. The above obstacles are not exhaustive, nor are they necessarily mutually exclusive. If the manufacturer controls the supply of a certain raw material. Any barrier that prevents competitors from entering the market is the cause of monopoly.