today I want to talk to you about the
three different conditions that cause a
I’m Patrick made a video host of value
teaming weekly and today we’re going to
talk about a different kind of Monopoly
than the one we’re accustomed to I’m not
talking about our buddy
name uncle Pennybags who we play the
game and we roll the dice and you hope
to land on boardwalk and you know pass
go and collect $200 and not go to jail
and we’re not talking about their game
today we’re talking about real-life
Monopoly three things cause a monopoly
to happen one only one firm sells the
product there’s only one firm that sells
the product to two there is a very
difficult barrier of entry meaning the
government’s created so many regulations
and licensing for you to get in that it
makes it tougher for smaller business to
go in and compete with the bigger
business there’s too many regulations
too many laws very difficult for the
smaller business to compete with the
bigger business three is there’s no
closed substitute so closed substitute
could be I have a choice between buying
a car
but there’s motorcycles if a car sold
for a hundred thousand dollars then
there’s a motorcycle then there’s a
bicycle I have a closed substitute so
when you think about those three things
I’ll give you a few examples
business-wise when Apple first came out
with our iPhone you remember when the
iPhone first came out it was a big hit
it’s called a smart phone it’s
incredible it does your thinking for you
one of the best things that happen for
you and I his Droid came out right and
won the best thing that’s recently
happened for everybody including iPhone
users and the consumer is Samsung came
out with a new phone call Galaxy s5 that
phone is going to influence Apple to get
a bigger screen and get better if they
don’t they’re going to lose a lot of
customers to Samsung and they need to be
a little bit more affordable for the
average middle-income family to be able
to buy that if they don’t they’re going
to lose customers you think about
Netflix product rule it did very well
stocks doing incredibly well
Amazon decides they want to compete with
Netflix you know what that’s going to do
if you own Netflix be excited about this
because the product is going to get
better they’re going to have to deliver
better product for you because there’s a
competition now there’s somebody that
wants to take that marketplace of
Netflix is that whatever percentage
Amazon’s just going to lower it and
Netflix need to think about creative
ways to prevent that from happening some
people may say well Groupon was a
monopoly when it first came out yes but
it doesn’t last long because within one
year
couple thousand group buying websites
came out that gave him so much
competition that made Groupon changed
their regulations with their
relationship with businesses where they
had to go from 50/50 profits to sixty
forty to seventy thirty to 80/20 because
there were other people that were doing
the same and that continues on happening
and happening and happening because the
number one thing that prevents a
monopoly from happening is choice when
there are choices everybody has the
pressure to improve I don’t want to go
to Starbucks I have coffee bean if I
don’t want to go to Burger King I have
McDonald’s if I don’t want to go to
Subway
I have Quiznos the list goes on because
choices prevents monopolies from taking
place so when you think about the
pendulum if we have a pendulum here on
one side there’s only one company it’s a
pure monopoly on the other side we have
pure competition many many firms what do
you think is the best opportunity for
you and I what a lot of firms so that’s
what we call it free trade when there’s
you know allowing Japan to come and
compete against Ford and Chevrolet when
Toyota comes here Honda comes here it’s
allowing international companies to
compete domestically that not only
creates the products to get cheaper and
cheaper and cheaper for you and I but it
also makes the competitors produce
better products innovation gets better
because they’re seeing their competitors
what they’re doing this has happened
firsthand to me with competitors that I
have that we deal with because every one
of us is forced to improve collectively
representing that one industry together
but above all if there’s one
organization that can both prevent and
influence or monopolies from taking
places the US government here’s why a US
government can get involvement say no
this is a monopoly this is not going to
be taking place and on the opposite side
US government can also create a lot of
regulations by the way you and I vote
because it makes
like we’re doing the right thing let’s
over regulate the this industry and this
business because I don’t like Apple I
don’t like Walmart I don’t like this
let’s create more regulations you know
what the bigger businesses say no
problem you’re helping us out you know
why the more deregulation the less the
smaller business can compete with the
top guy which means what for you and I
prices don’t go lower and what you and I
vote for as the consumer is to make
things better efficient and more
cost-effective the more the regulations
that less that’s going to happen for us
so my message of the week to you and
please be sure to subscribe to the
channel and comment cuz I’d love to hear
from you things that can cause a
you see action over again today I want
to talk to you about three different
condition conditions today I want to
talk to you about the three different
what was I thinking about my Nepali like
what even sounds like my Nepali
mana party it sounds like a city in
France you know I went to a city and friends called mana Poli
three different conditions that cause a
I’m Patrick made a video host of value
teaming weekly and today we’re going to
talk about a different kind of Monopoly
than the one we’re accustomed to I’m not
talking about our buddy
name uncle Pennybags who we play the
game and we roll the dice and you hope
to land on boardwalk and you know pass
go and collect $200 and not go to jail
and we’re not talking about their game
today we’re talking about real-life
Monopoly three things cause a monopoly
to happen one only one firm sells the
product there’s only one firm that sells
the product to two there is a very
difficult barrier of entry meaning the
government’s created so many regulations
and licensing for you to get in that it
makes it tougher for smaller business to
go in and compete with the bigger
business there’s too many regulations
too many laws very difficult for the
smaller business to compete with the
bigger business three is there’s no
closed substitute so closed substitute
could be I have a choice between buying
a car
but there’s motorcycles if a car sold
for a hundred thousand dollars then
there’s a motorcycle then there’s a
bicycle I have a closed substitute so
when you think about those three things
I’ll give you a few examples
business-wise when Apple first came out
with our iPhone you remember when the
iPhone first came out it was a big hit
it’s called a smart phone it’s
incredible it does your thinking for you
one of the best things that happen for
you and I his Droid came out right and
won the best thing that’s recently
happened for everybody including iPhone
users and the consumer is Samsung came
out with a new phone call Galaxy s5 that
phone is going to influence Apple to get
a bigger screen and get better if they
don’t they’re going to lose a lot of
customers to Samsung and they need to be
a little bit more affordable for the
average middle-income family to be able
to buy that if they don’t they’re going
to lose customers you think about
Netflix product rule it did very well
stocks doing incredibly well
Amazon decides they want to compete with
Netflix you know what that’s going to do
if you own Netflix be excited about this
because the product is going to get
better they’re going to have to deliver
better product for you because there’s a
competition now there’s somebody that
wants to take that marketplace of
Netflix is that whatever percentage
Amazon’s just going to lower it and
Netflix need to think about creative
ways to prevent that from happening some
people may say well Groupon was a
monopoly when it first came out yes but
it doesn’t last long because within one
year
couple thousand group buying websites
came out that gave him so much
competition that made Groupon changed
their regulations with their
relationship with businesses where they
had to go from 50/50 profits to sixty
forty to seventy thirty to 80/20 because
there were other people that were doing
the same and that continues on happening
and happening and happening because the
number one thing that prevents a
monopoly from happening is choice when
there are choices everybody has the
pressure to improve I don’t want to go
to Starbucks I have coffee bean if I
don’t want to go to Burger King I have
McDonald’s if I don’t want to go to
Subway
I have Quiznos the list goes on because
choices prevents monopolies from taking
place so when you think about the
pendulum if we have a pendulum here on
one side there’s only one company it’s a
pure monopoly on the other side we have
pure competition many many firms what do
you think is the best opportunity for
you and I what a lot of firms so that’s
what we call it free trade when there’s
you know allowing Japan to come and
compete against Ford and Chevrolet when
Toyota comes here Honda comes here it’s
allowing international companies to
compete domestically that not only
creates the products to get cheaper and
cheaper and cheaper for you and I but it
also makes the competitors produce
better products innovation gets better
because they’re seeing their competitors
what they’re doing this has happened
firsthand to me with competitors that I
have that we deal with because every one
of us is forced to improve collectively
representing that one industry together
but above all if there’s one
organization that can both prevent and
influence or monopolies from taking
places the US government here’s why a US
government can get involvement say no
this is a monopoly this is not going to
be taking place and on the opposite side
US government can also create a lot of
regulations by the way you and I vote
because it makes
like we’re doing the right thing let’s
over regulate the this industry and this
business because I don’t like Apple I
don’t like Walmart I don’t like this
let’s create more regulations you know
what the bigger businesses say no
problem you’re helping us out you know
why the more deregulation the less the
smaller business can compete with the
top guy which means what for you and I
prices don’t go lower and what you and I
vote for as the consumer is to make
things better efficient and more
cost-effective the more the regulations
that less that’s going to happen for us
so my message of the week to you and
please be sure to subscribe to the
channel and comment cuz I’d love to hear
from you things that can cause a
you see action over again today I want
to talk to you about three different
condition conditions today I want to
talk to you about the three different
what was I thinking about my Nepali like
what even sounds like my Nepali
mana party it sounds like a city in
France you know I went to a city and friends called mana Poli
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