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#

PowerKey QuestionScale EconomicsDoes cost-per-unit drop meaningfully as we grow?Network EconomicsDoes each new user make the product better for existing users?Counter-positioningWould adopting our model hurt incumbents' current revenue?Switching CostsHow painful (time, money, risk) is it for customers to leave?BrandingCan we charge premium beyond rational product attributes?Cornered ResourceDo we have access to something competitors literally cannot get?Process PowerCan competitors observe but not replicate how we do things?

Detailed Reference#

For full examples, anti-patterns, and related frameworks: read references/powers-detail.md