About this source
A strategy framework identifying the seven and only seven types of strategic Power that enable businesses to achieve persistent differential returns. Helmer distills decades of consulting and active equity investing into a compass for real-time strategic decision-making, arguing that every durable business must possess at least one of these Powers or face ruin from competitive arbitrage.
Frameworks extracted
9 totalSTRdays
The Fundamental Equation of Strategy
Value equals market scale multiplied by Power -- both are necessary, neither alone is sufficient
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The Power Progression
Match each Power type to the specific business stage when its Barrier first becomes available
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Process Power
Evolve processes so complex and tacit that competitors cannot replicate them in time
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Cornered Resource Power
Secure exclusive access to a value-creating asset that competitors cannot obtain at any price
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Branding Power
Build durable emotional associations that justify premium pricing for identical offerings
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Switching Costs Power
Lock in customers so that the cost of leaving exceeds the benefit of any alternative
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Counter-Positioning Power
Adopt a superior business model that incumbents cannot copy without damaging their existing business
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Network Economies Power
Build a product whose value to each user grows as more users join, creating winner-take-all
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Scale Economies Power
Use declining unit costs at higher volumes to make competitors' share gains prohibitively expensive