The Dynamics of Power

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Transforming is about the dynamics part of power and maybe even extend into corporate strategy and all just business strategy. The central problem of corporate strategy is why is one plus one greater than two? In other words, is there any reason from a value point of view for two separate businesses to be under the same roof? And so it's really that question of why is it that if you're in one thing, it makes sense or doesn't make sense to be in another thing.

7 Powers author Hamilton Helmer and his Strategy Capital colleague Chenyi Shi join us again to discuss their latest research on a topic that’s highly relevant to the recent Acquired canon: how to build a second business line. This incredibly important “transforming” question faces every great company who has achieved initial product success (as well as their investors). Do we continue solely along the established path, or do we attempt to grow new branches on the tree? Some companies grow new businesses with tremendous success — Amazon and AWS, Nintendo and video games, Nvidia and CUDA — yet many others fail miserably. For the first time Hamilton and Chenyi share their research-based playbook on how companies should approach this decision and choose wisely. Tune in!

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Link to Hamilton's 2-Axis Chart

Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.