Guess the stock S19｜The power of monopoly

A monopoly is when a single company controls the majority of the market share in an industry or sector, benefiting from switching costs. According to super-investor Rob Vinall, it is costly and disruptive to replace the dominant market leader, making them reluctant to switch providers and enabling the company to earn beyond-normal profits. However, the risk is that it tends to make the company incumbents complacent and lazy (in the long run).

Case 1:

As the picture of global market share held by operating systems for desktop PCs shown, the company has the dominant desktop operating system worldwide as of 2022, with a share of just over 76 percent.

Source: Statista

Thanks to its dominant position, the company (along with Intel) became the top 2 profitable companies in the PC market for decades.

Guess the stock S19｜The power of monopoly

Case 2:

The company is the largest beer company in the US. In a market report for 2020, the company had about 40% of the U.S. market share, far ahead of the other players. The product portfolios include Michelob Ultra, Stella Artois, Corona, Beck's, and Budweiser.

Source: Beer market insight, Jefferies

As environment can create or wipe out value, the company is on its way of transition as the trend of consumer preference changes.

Case 3:

Like many tech giants , the company dominates the online retail market as well as Cloud computing's IaaS business in the U.S.

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Event Duration: Jan 27-29

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