Zero to one Summary

Zero to one summary

Santosh Gairola   By   santosh |  updated :   25 April 2018

Zero to one summary

This post is the Zero to one summary, a book written by Peter Thiel.

On this post, our readers will conclude what it takes someone to go from nothing to something.

Let's get started with official Zero to one summary where Peter has given more significance to Technology in comparison to the globalization.

Understanding Zero first.

Technology gives you an open platform to create your Business monopoly while going through Zero to one.

Zero is really the most exciting figure which actually represents nothing. Whereas visionaries and entrepreneurs see it differently.

The number Zero gives the freedom of exploration and expression which leads to creating and operating plans.

For successful businesses, it is imperative to go from zero to one instead of one to N

People who choose to go from zero to one can achieve massive success in comparison to people who choose to go from one to N.

Understanding the term zero to one

It is difficult to create something fresh, It requires the ability to take the risk, creativity in the logical approach, skillset, Hard work, and perseverance, all in the right combination.

People lack original ideas and required professional skill set, therefore, it is really difficult for them to choose the path of zero to one.

Going one to N means you are not creating something new, you are copying thing that worked previously for successful entrepreneurs.

People who follow the path of 1 to N. They have horizontal progress rate which means limited success ratio.

They modify the original ideas of the creator and apply them by adding their own personal touch to it.

Hence going one to N lacks originality and innovation whereas going zero to one leads to Monopoly and vertical progress.

Now the question comes why we should create a monopoly?

By answering this question Peter Thiel defined that Capitalism and competition are totally opposite things.

Capitalism refers to generating profits one the other side Competition refers to reducing profits.

Capitalism means capturing the large market share and leading towards monopoly and competition means lowering the prices and margins.

In contrast, Monopoly enjoys high return from the market in a form of the profit.

You can clearly understand the true meaning of monopoly by considering the example of Google as a search engine.

In the search engine, war Googles holds the monopoly by dominating the 68% of the worldwide market.

By coming to smart mobile devices, Google owns 90% of the worldwide mobile search market share.

Therefore entrepreneurs should be intended to create monopolies.

How to create monopolies?

Massive success leads toward monopoly. According to Author, Success is not accidental and not a matter of luck.

It is an effort which is nourished with hard work, dedication, and persistence. If you are depending on your luck then you cannot create a monopoly.

Our entire system is built on this premise which amplifies the diversification in education and skills rather than specification of knowledge and skill.

The educational institute like schools and college are busy in making an army of those students who are average at everything and good at nothing.

This concept about types of education could be understood better by reading Think and grow rich summary.

Getting early focus on your concept at a very young age can be fruitful which can lead Zero to one approach.

Applying the basic concept of business leads to monopoly. Zero to one summary exactly defines that.

Develop Zero to one offering in the Niche market

Firstly you need to understand your niche market then scale up.

You need to come out with some product, service or solution that delivers performance, speed and including other benefits.

Zero to one infographics

Key to success

The key to success in value creation is to avoid competition at all cost.

Treat your product or your service like your baby. There is always a place for the good stuff in the market.

This whole process will take time please be patient and try to establish a relationship with your customer by providing them effective service and care.

Remember each client or customer is a valuable gem. So, Keep taking your service feedback from the market.

The path towards global domination goes through by creating a entry barrier for other entrepreneurs from entering in your market.

This entry barrier helps you to create a loyal customer base. Here we need to understand one thing that market shifts so fast. We need to be keep updated with new trends.

The time period for any monopoly could be limited hence monopoly needs to be protected over a period of time.

How to protect monopoly?

According to Author's book Zero to one summary, He had defined few ways through which anyone could protect his monopoly.

1 Network effect -

It states that make more customers, users & give value to your offering.

Let's simplifies it.

Network effects address the value of your offering. Getting connected with people, who could help you is always a good option.

The more user you have and the greater to the value to each user, making it more difficult for someone to compete with you.

Network effect Creates entry barrier for other business owners. One of the finest examples of Network effect is used by Coca-cola.

They have a secret group of people who have the responsibility of Coca-Cola taste.

Nobody else knows what is the trade secret of their sugar water. Only a team of specialized people know the secret of their Coca-cola Syrup.

This is the best example of the network effect.

2 Economies of scale

Economies of scale are the second way to protect the monopoly. Walmart uses it to dominate the world market. They purchase the stuff in the large amount and offers in minimum margins.

The larger the volume, lower the average fix cost. Making it difficult to your competitor to generate any profits.

3 Brading

Branding means applying the concepts of the marketing to make an awareness of your product in the customer's eyeballs.

Branding lowers your distribution cost. You competitor will need much more upfront investment in advertising to generate awareness to perceive your market.

Ultimately they will be unable to do so and you will become king of your market.

Dominos Pizza is the coolest example of such awareness domination.

They have the policy to send Pizza in 30 minutes otherwise they will deliver it to free.

Due to their efforts, other pizza houses find it really difficult to break Dominos Pizza entry barrier.


On this post, we have given the Zero to one summary, A book written by Peter Thiel.

If you liked this post then please feel free to share it on your most loved social media network.

We will be thankful for your kindness.

Last but not the least, Please keep smiling and stay blessed

Sharing is caring.

  Follow by Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.


Add comment