This is about the price-setting capability for making a profit, while compelling competitors to take lower price and incur a loss. As Innovation offers the opportunity of increasing quality and reducing the cost of products simultaneously, often the smartest producer takes a higher advantage from it than competitors. The continued success of taking more advantage of innovation leads to the smartest firm’s capability of offering higher quality at a lower cost than what competing firms can offer. Moreover, the increasing role of software and connectivity in products is making the minimum efficient scale irrelevant. Consequently, the smartest firm emerges with the Monopolistic market power.