7 Powers Cheat Sheet

	C	D	E	F	G	H
1	7 Powers Cheat Sheet
2	This is a Hustle Badger template. Get more practical how-to guides, templates and case studies HERE.
3	How to use this sheet: make a copy for your private use & edit there - so that others can continue to use this master
4	Read the full guide to using this 7 Powers cheat sheet here
5

6
7	Power	Example	Tactics to maximize effect	Example	Tactics to resist power	Example
8	1. Network Effects Each user enjoys more value as new users join the network	Depop - More sellers means more variety, more variety means more buyers, more buyers means more orders, more orders means more sellers	Growing as fast as possible.	Depop - growth fueling by heavy investment in paid and influencer deals.	Targeting a niche customer segment, and offering superior functionality to this niche.	Backmarket - focuses on electronics (quality + safety) to compete against eBay.
9	2. Scale Economies Unit costs decline as volume increases	Amazon - high density of logistics hubs and drivers allows for same and next day delivery, which is prohibitively expensive for competitors to offer.	Continuning to invest at scale others can't match.	Amazon - offers same day delivery as other retailers struggle to offer next day delivery.	Innovating to make existing scale economies irrelevant.	Skype - offers internet based international calls that didn't require building infrastructure of traditional telecoms companies.
10	3. Switching Costs Switching to an alternate product would be costly or painful for users	GoCardless - Deep integration with customers makes switching to competitors difficult.	Offering new products and services to deepen integration with customers.	GoCardless - launches one-off payments and fraud tools after recurring payments	Making transitioning as smooth as possible for customers.	GoCardless - creates bulk change process to migrate direct debit payments from other providers.
11	4. Counter Positioning Business model/value prop not easily copied as it would damage existing business	Spotify - Subscription-based music streaming service could not be copied by record labels and Apple who relied on sales of individual songs and albums	Investing in other powers - this is a temporary advantage only.	Spotify - has switching costs (playlists and taste profile) and cornered resource (exclusive podcasts)	Manage decline of existing business and adapt to new business model / customer expectations.	Apple - launched Apple Music alongside iTunes to create new streaming revenue as sales of individual tracks and albums declined.
12	5. Cornered Resource Unique access to a valuable asset	Deliveroo - Exclusive contracts with premium restaurants prevent other delivery services from offering same food.	Deepen investment in resources that others don't have access to.	Deliveroo - Sets up dark kitchens ("Deliveroo Editions" ) to provide popular restaurant's food exclusively through Deliveroo in more neighborhoods	Use partnerships, acquisition or substitution to get access to a cornered resource, or remove the need for it.	Disney - Acquires Pixar to get access to back catelogue of IP, and creative team.
13	6. Branding An objectively identical offering has higher perceived value	Apple - Has a devoted fan base that will always consider Apple products first, rather than look at phones and laptops from alternative manufacturers.	Continue investing in brand building activity	Apple - Pushes privacy as major selling point in recent years, as other FAANG companies get negative press on issue.	Create a different brand promise to appeal more strongly to niche set of customers.	Telegram - Emphasizes privacy capabilities to combat Whatsapp's more ubiquitous brand and connection to Meta.
14	7. Process Power Embedded culture + process enable lower costs and/or higher quality	Stripe - Focuses relentlessly on documentation, testing and other seemingly small details, which has resulted in a suite of products that developers love to use.	Invest in hiring and internal culture to strengthen unique way of doing things.	Amazon - Codifies culture into 17 leadership principles, and uses these extensively in hiring. Uses "bar raiser" interviews to ensure quality of candidates is maintained.	Focus on own powers to develop competitive edge.	Uber Eats - Bundles mobility solutions with food and grocery delivery to give it scale advantages in face of Getir's process power on grocery.
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100