Wednesday, July 22, 2020

7 Powers: The Foundations of Business Strategy

What allows a business to thrive sustainably in the long term? It must have a competitive advantage, or power. In 7 Powers: The Foundations of Business Strategy, Hamilton Helmer describes those seven powers that allow a business to prosper.

There's nothing new among the powers he discusses for anyone that has read about moats before. They include typical things like economies of scale and switching costs etc.

What I found different about this book though was a separation between how those moats came to be and the key success factors that lead to the ability to even develop such a moat. A company doesn't just grow from 0 to moat overnight. There are things it must do well to even have a chance to create a moat.

And those things are different depending on the particular power one is seeking. I particularly enjoyed this section.

I recommend the book to anyone who is a student of business strategy.

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