Monopolies
How Howard Hughes became the richest man in the world
We don't have a monopoly. Anyone who wants to dig a well without a Hughes bit can always use a pick and shovel - Howard Hughes
At the beginning of the 20th century, the ever-increasing demand for oil was pushing companies and industries to find new oil fields and drill faster oil wells. Like everyone who drilled for oil, Howard Hughes Sr. also had trouble creating holes deep in the underground rock formations. The problem was that the existing drill bit at that time wore down too quickly and the process of replacing it was expensive and time-consuming.
Hughes began experimenting with different modifications to the existing tool bit and struck gold with an improved version in 1908. He patented it and started a company that unsurprisingly became extraordinarily successful - everyone who drilled an oil well wanted the best tool bit to optimize their cost and improve the chances of striking oil (running an oil rig was expensive at ~$250 per hour in the 1900s). In 1933, two engineers of the Hughes Tool Company invented the Tricone bit that drilled faster and straighter than any other drill bit in existence and immediately patented it. For the next 17 years the patent ran, and Hughes's market share approached 100% - Almost all the successful oil discoveries during this era were done using Hughes's tool and helped Howard Junior become the richest man in the world!
If you found this interesting, check out the power of brands.