7 Powers of Business Strategy
The Foundations of Business Strategy by Hamilton Helmer
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7 Powers by Hamilton Helmer | Barrier (to Challenger) | |||||
Unwilling to Challenge | Unable to Challenge | |||||
plus uncertainty | ||||||
Collateral Damage | Share Gain Cost / Benefit | Hysteresis | Fiat | |||
| | Input | | Scale Economics | | Cornered Resource |
Scale of Prodnc/ Distn | | | ||||
Prodnc/Distn Approach | Counter- Positioning | | Process Power | |||
| Superior Deliverables | Switching Costs | ||||
Affective Valence | | Branding | | |||
Uncertainty | | | ||||
Benefits from Other Users | | Network Economics | | | ||
Origination
Takeoff
Stability
Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Benefit (to Power Holder)
∆ Value ( => P )
∆ Cost
Power Progression
The Foundations of Business Strategy by Hamilton Helmer
www.strategypunk.com
Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Origination
Takeoff
Stability
Business Size ($)
Cornered Resource
Counter Positioning
Network Economics
Scale Economics
Switching Costs
Branding
Process Power
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Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Helmer’s 7 Powers
The per-unit cost decreases as production volume increases.
Scale Economics
1
The value of the service is enhanced as new customers join the network/service.
Network Economies
2
A new or superior business model.
Counter Positioning
3
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Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Helmer’s 7 Powers
It is expensive for customers to switch to an alternate product/service.
Switching Costs
4
Value of the brand (if it allows pricing power).
Branding
5
Better access to resources (talents, suppliers, etc)
Cornered Resource
6
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Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Helmer’s 7 Powers
Better internal processes that enable lower costs and/or a superior solution.
Process Power
7