7-powers

# 7 Powers Strategic Framework Apply Hamilton Helmer's framework: Power = **Benefit** (improved cash flow) + **Barrier** (prevents competitive arbitrage). Without both, advantage is temporary. ## The Seven Powers by Lifecycle Phase **Origination (pre-PMF):** - **Counter-positioning** — new model would cannibalize incumbents' existing business - **Cornered Resource** — preferential access to scarce resource (IP, talent, regulatory) **Takeoff (rapid growth post-PMF):** - **Scale Economics** — per-unit cost decreases with volume faster than competitors can match - **Network Economics** — product value increases as more users join - **Switching Costs** — customers face significant cost (money, time, risk) to leave **Stability (mature):** - **Branding** — pricing power from emotional connection beyond rational attributes - **Process Power** — embedded organizational capabilities competitors can't replicate ## Process 1. **Identify lifecycle phase** — Origination → Takeoff → Stability 2. **List benefits** the business currently has 3. **For each benefit, test the barrier:** "What prevents competitors from copying this?" 4. **Map to available Powers** for the current phase 5. **Prioritize** building Powers that create both benefit AND barrier now 6. **Flag anti-patterns** — benefits without barriers, wrong-phase Power pursuit, easily-eroded barriers ## Quick Diagnostic Questions | Power | Key Question | |-------|-------------| | Scale Economics | Does cost-per-unit drop meaningfully as we grow? | | Network Economics | Does each new user make the product better for existing users? | | Counter-positioning | Would adopting our model hurt incumbents' current revenue? | | Switching Costs | How painful (time, money, risk) is it for customers to leave? | | Branding | Can we charge premium beyond rational product attributes? | | Cornered Resource | Do we have access to something competitors literally cannot get? | | Process Power | Can competitors observe but not replicate how we do things? | ## Detailed Reference For full examples, anti-patterns, and related frameworks: read [references/powers-detail.md](references/powers-detail.md)