7 Powers: The Foundations of Business Strategy

• by Hamilton Helmer
• Summary:
  • English
    • 1. Scale Economies: If you make a lot of lemonade, you can do it cheaper than others. It’s like buying lemons in bulk to get a discount.
    • 2. Network Economies: The more friends you have drinking your lemonade, the more other kids want to join in. Everyone wants to be part of the fun!
    • 3. Counter Positioning: You have a secret ingredient in your lemonade that others don’t. New stands can’t easily copy it because it’s too different from what they’re used to.
    • 4. Switching Costs: If your friends buy a special cup for your lemonade, they won’t want to switch to another stand because then their cup would be useless.
    • 5. Branding: Everyone loves your lemonade because it has a super cool name and logo. When kids think of lemonade, they think of you.
    • 6. Cornered Resource: You have the only special tree that grows the best lemons, so no one else can make lemonade as good as yours.
    • 7. Process Power: You have a special, super-fast way to make lemonade that no one else knows about, so you can serve it faster and better.