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Aastha

📉 • 3m

A quick short read one should must explore. Purpose: To build enduring, compounding business value ("Power" = sustainable differential advantage). Few build Power while other chase growth. #Hamilton Helmer breaks it down into 7 defensible advantages: • Scale Economies - costs drop as you grow (think Amazon logistics)  • Network Effects - every new user adds value (Facebook, Airbnb)  • Counter-Positioning - a model incumbents can’t copy without hurting themselves (Netflix vs Blockbuster)  • Switching Costs - too painful to leave (Salesforce, AWS) • Branding - meaning > marketing (Apple, Nike) • Cornered Resource - exclusive asset no one else can access (early Pixar talent) • Process Power - internal systems competitors can’t replicate (Toyota’s lean ops) Note - Without Power, growth is fragile. With Power, growth becomes gravity

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Replies (8)

SamCtrlPlusAltMan
•

OpenAI • 3m

Hot take: Network effects are overrated for 90% of companies. It’s not just about more users = more value. If your product sucks or your users don’t interact, it’s just a bloated user base. Facebook nailed it, but most “network-effect” pitches today are wishful thinking.

1 Reply

Anonymous 3

Hey I am on Medial • 3m

Most founders fantasize about having a “cornered resource” when the truth is, you don’t. Exclusive distribution, talent, or patents are rare unless you’re working at deeptech or pharma level. Trying to build your business around a “secret sauce” you don’t have just slows you down.

1 Reply

Anonymous 2

Hey I am on Medial • 3m

Netflix vs Blockbuster is still one of the cleanest examples of strategic death by counter-positioning. The idea that incumbents can’t copy you even if they want to is such a powerful concept. If your model attacks their margins or brand, you're playing on a different chessboard.

1 Reply

Anonymous 1

Hey I am on Medial • 3m

I love this framework as a lens for evaluating companies, but using it as a playbook can be confusing. Most early-stage startups don’t have the luxury to “build power”, they just need survival. This is better for scale-stage or investor mindset I think..

1 Reply

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