Foundations of Business Strategy: 7 Powers and Power Progression
Explore the 7 powers of business strategy and the concept of power progression outlined by Hamilton Helmer. Discover key factors such as scale economics, network economies, counter positioning, switching costs, branding, cornered resources, and process power that can influence business success. Gain insights into how these powers can drive business growth, stability, and competitive advantage in the market.
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7 Powers of Business Strategy The Foundations of Business Strategy by Hamilton Helmer 7 Barrier (to Challenger) Powers by Hamilton Helmer Unwilling to Challenge Unable to Challenge plus uncertainty Collateral Damage Share Gain Cost / Benefit Hysteresis Fiat Benefit (to Power Holder) Input Scale Cost Economics Scale of Prodnc/ Distn Cornered Resource Prodnc/Distn Approach Counter- Positioning Process Power Superior Deliverables Value ( => P ) Switching Costs Affective Valence Origination Branding Uncertainty Takeoff Network Economics Benefits from Other Users Stability www.strategypunk.com Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Power Progression The Foundations of Business Strategy by Hamilton Helmer Origination Takeoff Stability Business Size ($) Cornered Resource Network Economics Branding Counter Positioning Scale Economics Process Power Switching Costs www.strategypunk.com Source: Hamilton Helmer Foundations of Business by Hamilton Helmer
Helmers 7 Powers 1 2 3 Scale Economics Network Economies Counter Positioning A new or superior business model. The value of the service is enhanced as new customers join the network/service. The per-unit cost decreases as production volume increases. Source: Hamilton Helmer Foundations of Business by Hamilton Helmer www.strategypunk.com
Helmers 7 Powers 4 5 6 Switching Costs Branding Cornered Resource Better access to resources (talents, suppliers, etc) Value of the brand (if it allows pricing power). It is expensive for customers to switch to an alternate product/service. Source: Hamilton Helmer Foundations of Business by Hamilton Helmer www.strategypunk.com
Helmers 7 Powers 7 Process Power Better internal processes that enable lower costs and/or a superior solution. Source: Hamilton Helmer Foundations of Business by Hamilton Helmer www.strategypunk.com
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