7-powers
Hamilton Helmer's strategic framework for achieving sustainable competitive advantage through seven distinct power types. Use when analyzing business strategy, evaluating competitive moats, assessing investment defensibility, diagnosing why a business struggles despite apparent benefits, or planning product strategy. Triggers on "7 powers", "competitive advantage", "moat", "power strategy", "Hamilton Helmer", or questions about sustainable business advantage.
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- Hamilton Helmer's strategic framework for achieving sustainable competitive advantage through seven distinct power types. Use when analyzing business strategy, evaluating competitive moats, assessing investment defensibility, diagnosing why a business struggles despite apparent benefits, or planning product strategy. Triggers on "7 powers", "competitive advantage", "moat", "power strategy", "Hamilton Helmer", or questions about sustainable business advantage.
# 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)
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