Top questions to answer for the business

• What Power types do I have now?
• What Power types do I need to worry about establishing now?
• What Power types can we develop given our growth stage?

The axioms

<aside> 🧠 My take: Strategy objective: Maximize potential fundamental business value and develop a continuous path to power in relevant markets.

Value = Market size (TAM) * Power

Power is measured by achieving a Superior, Significant, and Sustainable differential returns.

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Note that this is not speculative but fundamental value. Further it is about potential value.

7 Powers framework vs Reforge's defensibility

<aside> 🤔 While Reforge suggests 4 components of defensibility: Brand, Embedding (Switching Costs), Network Effects, and Economies of Scale; 7 Powers expands adding Counter Positioning, Cornered Resources, and Process Power to the mix with solid research suggesting a complete picture to consider towards Strategy.

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Overview of sources of power — Power statics

Scale economies — A business in which per unit cost declines as production volume increases.

<aside> 🔥 Benefit: Reduced cost Barrier: Prohibitive cost of market share gains

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E.g Netflix:

Content owners charge per play — variable cost.Netflix commissions Originals — fixed cost.£100m content cost / 30m subs = £3.3 cost/subscriber