Competitive Advantage in a Monopolistic Market?

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Masiye Mangwana

Competitive Advantage in a Monopolistic Market?

Can Porter's competitive advantage work in monopolistic markets, such as utility companies where the product they sell is unique (water or electricity) and can't be sold by other parties?

  fahrie haris
Manager, Indonesia
 

Competitiveness in a Monopolistic Market

Considering Ohmae's 3 C's (company, consumer, competitor) analysis, water and electricity is a rather monopolistic market, there's hardly any competition here. I believe there's little reason to apply Porter's competitive advantage theory in such cases.
Perhaps it's better to focus on operational excellence instead.

  Bernhard Keim
Business Consultant, Germany
 

Yes, Even in a Monopolistic Market, You Can Gain Competitive Advantage

In a monopolistic market the purchasing power of the consumer at some point becomes your competitor. People won't be able to spend unlimited amounts on your product, they might just cut back their budgets for your products. Your share on their wallet is limited. They always have a choice to spend more on you, or for something else.

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