7 Powers

Outline

7 Powers (2016) explains what makes a business truly valuable over the long term. Hamilton Helmer identifies seven sources of lasting competitive advantage: scale economies, network economies, counter-positioning, switching costs, branding, cornered resource, and process power. Using examples such as Netflix, Intel, and Apple, the book gives leaders and investors a clear framework for building and recognising durable strategy.

• A business is truly valuable over the long term only when it holds a durable source of competitive advantage.
• Helmer names seven sources of lasting advantage: scale economies, network economies, counter-positioning, switching costs, branding, cornered resource, and process power.
• Netflix, Intel, and Apple are used as examples to show how these powers work in real companies.
• The framework helps leaders build a durable strategy and helps investors recognise one when they see it.
• Lasting advantage is what protects a company's profits as it grows.

Hamilton Helmer is an American business strategist, investor, and educator. He founded the consulting firm Strategy Capital, has advised many companies on strategy, and has taught strategy at Stanford University. He is best known for 7 Powers, a book widely read by founders, executives, and investors in the technology world.