The Core Business Power Prospect

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The three most common power types that you would find are scale economies, network economies, and switching costs. The counter positioning one is typically the type of power that you would have against incumbents, but it doesn't work against wannabes because they don't have the same problems. But even if you're still in the make for you, the first step is always to get a really clear understanding of what that core business power prospect looks like.

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.