Theory of Firms Monopolistic Behaviour in Silicon Valley, the TV Show
Barriers to Entry Firms often try to establish barriers to entry to dominate their market and prevent new competitors from entering the market. Pied Piper uses technological barriers, specifically innovation of a new product. Their revolutionary compression algorithm, much better than any in the market, gives them a competitive edge over other tech companies,
Control of Essential Resources- This is seen by Hooli as a company with its own Application Store, just like the App Store or Play Store. Hooli's own application store meant that they had control over which apps to publish, meaning that they could very well have chosen not to list Pied Piper or a rival company's app on their store. Hooli also had their own search engine, which they were seen manipulating to remove online media on their company's criticism in an effort to maintain brand image
Patents- The patent for a decentralized internet also gave the holder (Gavin initially, then Richard) the sole rights to use the technology. Now that the concept of a decentralized Internet has been proven, Richard can enjoy exclusive rights on his technology, preventing other competitors from jumping in
Increasing Competitiveness Firms shown in Silicon Valley use many ways of becoming competitive and staying on the edge of the latest technology, being better than other firms.
Poaching- This is a common strategy used in the show. Poaching involves a firm stealing employees from competitors. There are many examples, the most common of which include Big Head being poached from Pied Piper to Hooli to improve PR and get hands on business secrets, Richard being approached to be poached by Flutterbeam as their CEO, etc.
Copy rather than innovate- This is self explanatory. Most competitors in the show copy products of Pied Piper and other businesses just to follow up with the latest innovations, such as Hooli and Endframe constantly trying to copy the middle-out compression technology, by methods such as reverse engineering.
Capture competitors' market-When businesses can't attract new customers, they often try to steal customers from their competitors. This is a form of poaching, but involves the market. An example if Pied Piper stealing Endframe's prime customer by hacking into the server and scheduling a meeting with them. Another example is Pied Piper trying to steal a chunk of Nucleus's market at Hooli-con.