Although it is a common strategy to use a market monopoly position to restrict the development of new entrants by raising prices, it is usually regarded as anti-competitive behavior and may violate anti-monopoly laws and regulations. However, from a business strategy perspective, the following are some methods that companies may adopt： ### 1. **Price squeeze** -**Definition**: By increasing the price of upstream products, monopolies put new entrants at a disadvantage in terms of cost, making it difficult to compete in the market. -** Example**: If a company controls the production of a key raw material, it can increase the price of that raw material, making it impossible for new entrants to produce products at a reasonable cost. ### 2. **Predatory pricing** -**Definition**: Monopolies temporarily lower prices, even below costs, to force new entrants out of the market, and then increase prices. -**Example**: A large retailer can significantly reduce the price of similar products when a new entrant enters the market, making the new entrant unprofitable and eventually exiting the market. ### 3. **Bundled sales** -**Definition**: Monopolies bundle multiple products or services, making it difficult for new entrants to compete on a single product. -**Example**: A software company can bundle its core products with additional features, making it impossible for new entrants to compete on the core products alone. ### 4. **Exclusive contract** -**Definition**: Monopolies sign exclusive contracts with suppliers or distributors to restrict them from cooperating with new entrants. -**Example**: A beverage company can sign an exclusive contract with a retailer that requires them to only sell their own products, thereby restricting market access for new entrants. ### 5. **Brand loyalty** -**Definition**: By establishing strong brand loyalty, monopolies make consumers not interested in the products of new entrants. -** Example**: A mobile phone manufacturer can build strong brand loyalty through long-term marketing and customer service, making consumers reluctant to try the products of new entrants. ### 6. **Increase market entry barriers** -**Definition**: Monopolies make it difficult for new entrants to enter the market by raising barriers to market entry, such as patents, technical standards, or regulatory requirements. -**Example**: A pharmaceutical company can apply for a large number of patents, making it difficult for new entrants to develop similar products. ### 7. **Restrict supply chain** -**Definition**: Monopolies restrict new entrants from obtaining necessary resources or services by controlling the supply chain. -**Example**: An automobile manufacturer can control the supply of key parts so that new entrants cannot obtain the necessary parts for production. ### 8. **Manipulating market information** -**Definition**: Monopolies manipulate market information to make it difficult for new entrants to obtain accurate market data or consumer feedback. -** Example**: A technology company can control industry reports or market research data, making it difficult for new entrants to understand the real market demand. ### 9. **Take advantage of economies of scale** -**Definition**: Monopolies reduce costs through large-scale production, making it impossible for new entrants to compete in prices. -**Example**: A large manufacturing company can minimize costs through large-scale production, making it impossible for new entrants to compete with it in terms of price. ### 10. **Legal and regulatory means** -**Definition**: Monopolies use legal and regulatory means, such as patent litigation or industry standards, to restrict the development of new entrants. -** Example**: A technology company can delay its market entry by initiating a patent lawsuit, which will cause new entrants to fall into legal disputes. ### Conclusion Although these strategies may help monopolies maintain their market position in the short term, they are usually regarded as anti-competitive behaviors and may be subject to investigation and penalties by regulatory agencies. When formulating competitive strategies, enterprises should ensure compliance with relevant laws and regulations and avoid adopting improper means to restrict competition.