Hamilton Helmer

7 Powers

1. IDEA 1

   Lasting advantage needs power

   Helmer, a strategy adviser and investor, argues that a business can earn lasting superior returns only if it has power, a combination of a benefit and a barrier that stops competitors copying it. He identifies seven types of power.

2. IDEA 2

   Size can lower costs

   Helmer describes scale economies, where costs per unit fall as a business grows. In his account, a firm that makes more can spread fixed costs over more units, which lets it keep prices low or earn more per unit than a smaller rival.

3. IDEA 3

   Networks grow stronger

   Helmer describes network economies, where a product becomes more valuable as more people use it. In his account, this makes the leading product harder to challenge, since each new user adds to its appeal.

All 8 ideas from 7 Powers →