The Importance of Business Definition

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If you understand power umbrellas bigger than what you currently offer and ignore it, you actually are creating competitive openings for somebody else to take on. For example, Blockbuster failed where they had the distribution network and the customer relationships. So there was a source of power there and they failed to exploit it in using that to launch their own streaming service. My take of Blockbuster is if they'd done a red envelope business a year earlier, Netflix wouldn't have survived.

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.