April 1, 2021

7 Powers: The Foundations of Business Strategy

Hamilton Helmer

The book has two parts. The first half is essentially an update of the concepts of Moats and Porter’s 5 Forces with the idea of Power that the author defines as a set of conditions that gives companies the ability to generate sustained differential returns. He defines the 7 Powers and separates the benefits and barriers attributed to each Power along with examples. The second half of the book focuses on the source of Power, how the Powers are attained, and when in the lifecycle of an industry/business the Power can be gained or lost. As a Stanford economist and former Bain consultant, the author presents a good balance of theory and real-world examples.

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