How to Transform a Company's Power

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If you are analytical and can figure out and quantify a company's power, then you can assign it a more accurate multiple of profit than anyone else can. And so I completely agree, and you properly constrained it. If there's a long history of financials, it's already in the price. So does Walmart have power? Sure. My dog can tell you that. Right. The proposition of strategy capital is if you have a differential understanding of long-term competitive outcomes in places where that's really hard to figure out,. You can value things more carefully. A fundamental thing in strategy is think all business definition, which is What really are the boundaries of your current business?

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.