After world war II, young Tucker tried to break in the automobile business with his original "Tucker Torpedo" automobile. But the Big three automobile makers (GM, FORD, and CHRYSLER)formed their own exclusive club, not allowing a new comer to join the club. With a plot (bully tactic, squeeze the capital, or tarnish Torpedo's credibility), they destroyed young Tucker's dream to be a major car maker.
Suppose you are in the same position as Tucker's to break in the Oligopoly market (Big three)
- What's your own strategy to survive and prosper in the oligopoly jungle?
- Is it a good idea to patent his torpedo first and work for the big companies until he accumulates enough capital to compete against big guys? (Old saying, if you cannot win over your opponent, try to make your opponent as your friend, then regroup, re-energize and beat it up later) or build your business quietly and slowly outside of big firms' market territory or radar such as early growth strategy of Walmart in supermarket industry or Google in internet search engine business or what other idea of yours?
- 30 years later, another young businessman, named Bill Gates first worked for IBM with his licensed operating system called MS-Dos program (although young Bill Gates originally bought Dos program from somebody else and it became a window). Later he built his own empire called Microsoft. Despite the difference of the initial sunk cost between a car industry and a software industry, please compare Tucker with Gates in terms of their business strategy.
- After over a half century later, another visionary car maker, Elon Musk emerges with an electric car of Tesla. What is the future of Tesla? Could it be the fate of another Tucker? If so, why? Is there any concern about Elon's leadership style such as infamous/bogus tweet about privatizing Tesla without funding, cash shortage and delayed product delivery? Or could it be another successful exception as a new member who survived and becomes prosperous in an Oligopoly corporate club due to another niche market of electric cars, despite growing global competition in electric car market? If so, why?
- Can you give us another Cinderella company successfully breaking into Oligopoly Jungle in the past and in the near future? Do you think the industry and exchange market of crypto currency (Bitcoin, Ethereum, etc.) will be Oligopoly or Monopolistic competition in coming decade?
Note: Look at Preston Tucker's open letter. (images attached)
Open Letter An Open Letter from Preston Tucker This letter appeared in many newspapers in the United States on June 15, 1948. An Open Letter to The Automobile Industry In The Interests Of The American Motorist By Preston Tucker President, Tucker Corp. Gentlemen: As you know, we are building a completely new motorcarthe rear engine Tucker. Being new-comers in the eld we have had to start from scratch and work harder and faster than most of you. For example, instead of the 20 months you usually take to produce a new model of conventional design, my engineers have taken less than 10 to perfect a car which I rmly believe opens a new era in motoring. In this same year, we have completed a nationwide dealer organization, acquired the largest most modern automotive plant in tile world, and cleared the decks for mass production. These things have been doneand well donein spite of persistent and unfair opposition from within the automobile industry. Please don't misunderstand me. Many of you have gone out of your way to be friendly to the Tucker Corporation. It's true, some of you have not shared our conviction that a rear-engine car is the car of the future, but you have been willing to let the American motorist judge that for himself, in the rm belief that what's best for the motorist is best for you in the long run. But there is another group-a very powerful groupwhich for two years has carried on a carefully organized campaign to prevent the motoring public from ever getting their hands on the wheel of a Tucker. These people have tried to introduce spies into our plant. They have endeavored to bribe and corrupt loyal Tucker employees. Such curiosity about what goes on in the Tucker plant should be highly attering, I suppose. But they haven't stopped there. They even have their spokesmen in high places in Washington. As a direct result of their inuence, Tucker dealers all over the countrymen of character and standing in their communitieshave been harassed and grilled by agents of the government and Congressional Investigating Committees. My associates and myself and the Tucker Corporation have been investigated and investigated, time and again. Millions of dollars of the taxpayers money have been squandered in an utterly fruitless effort to kill the Tucker, to bar us from needed raw materials, to keep us so busy defending ourselves and our efforts that the motoring public would tire of waiting for a completely new rear-engine car. But they haven't been able to stop us. You know, perhaps, that our bid on a government owned steel plant in Cleveland was recently refused. Let me tell you the inside story of that; Sealed bids were called for, in accordance with law. Only two were submitted, one by the steel company operating the plant, the other by the Tucker Corporation. The bids were opened nearly ve months ago. The Tucker Corporation's bid was high. If Tucker's bid had been accepted, it could have given taxpayers as much as four million dollars more for the plant than the steel company offered. This plant would provide ample raw materials for volume production of the Tucker and would serve numerous small businesses now starving for steel. You would think our high bid for the plant would have been accepted long ago. For ve months political pressure, ruthless and barefaced, has forced delay after delay. We're still waiting. We don't know who is responsible for this. But who do you suppose is getting the raw material from this plant we want for Tucker and small business? None other than some well known and unfriendlyautomotive manufacturers. Most of the political pressure and investigations we have had to face these last two years can be traced back to one inuential individual who is out to \"get Tucker.\" If he acts from honest conviction in his efforts to prolong the motorcar, then I hope he will have the courage to tell the public just that. But personally we believe he has more obvious motives. Evidence in Tucker les, for example shows the controlling interest in a large sales agency of an automotive corporate subsidiary is in his wife's name. And when he gave an elaborate party at a Washington hotel a few months ago, who do you suppose paid the bill? None other than an ofcial of an automobile manufacturera manufacturer distinctly unfriendly to the Tucker Corporation. Is all this, too, just coincidence? Now once more we are being investigated. Just at the time we are getting into production on a car that has won the hearts of the million motorists who have seen it, just when the job of making automobiles demands all our time and energy, my associates and I are asked to take time out again and again ever since we had the temerity to suggest America is eager for a completely new car. What would you think in our place? Would you say it was just coincidenceor would you think it was planned that way? You wonder, perhaps, why I have made these statements in an open letter. Here's why: As President of Tucker Corporation, I'm responsible to 1,872 Tucker dealers and distributors and nearly 50,000 Tucker stockholders. These people have put $25,000,000 into the Tucker Corporation. And I am going to protect their interests. In addition, we have promised American motorists a completely new rear-engine motorcar, and hundreds of thousands have written us that they are ready and waiting to buy it. Every day letters come to us from people who know that in ghting to put the rear-engine Tucker on the road we are, at the same time, ghting for their right as motorists to get the finest engineering American ingenuity can produce. We are going to justify the support these motorists so generously have given us. We are going to give them the car they want at a price they can afford, and without paying tribute to the Black Market. How this will be done will be announced today. But in the meantime, I want to register the fact that we have just begun to ght. We have been patient so far, but our patience is wearing thin. We can give names, dates and places to prove our charges of unfair competition, and if necessary we will do it. When the day comes that anyone can bend our country's laws and lawmakers to serve selfish, competitive ends, that day democratic government dies. And we're just optimistic enough to believe that once the facts are on the table, American public opinion will walk in with a big stick