4 Problems with Hamilton Helmer’s 7 Powers (62)
This week’s podcast is on the well-known 7 Powers framework by Hamilton Helmer. I go through some of its limitations and where I think it works best.You can listen to this podcast here or at iTunes, Google Podcasts and Himalaya.Hamilton Helmer's fundamental equation for value creation and captureValue = M0*g*s*m = market scale * powerM0 is market size at time zero. This is about targeting big and growing market opportunities.S is long-term persistent market share.m is long term persistent margins (operational margins after cost of capital).Hamilton Helmer's 7 Powers:Scale EconomiesNetwork EconomiesCounter PositioningSwitching CostsBrandingCornered ResourceProcess PowerFrom the Concept Library, concepts for this article are:7 PowersCompetitive Advantage4 Terrains and Strategies (BCG): Predictable vs. MalleableSMILE MarathonFrom the Company Library, companies for this article are:NetflixThis is part of Learning Goals: Level 7, with a focus on:35: Competitive Advantage——–I write and speak about digital China and Asia’s latest tech trends.I also run Jeff’s Asia Tech Class, a podcast and subscription newsletter on the strategies of China / Asia tech companies.This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.Support the show