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7 Powers: The Foundation of Business Strategy

von Hamilton Helmer

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  • Or more formally, there is a many-to-many mapping. This is also true more generally: there is a many-to-many mapping of all Power Types to Disruptive Technologies. Because Disruptive Technologies tell us nothing about Power they do not inform us about value.31 Because of this, the subject is only a sidebar in the Statics of Strategy.

  • Branding is an asset that communicates information and evokes positive emotions in the customer, leading to an increased willingness to pay for the product.

  • “Here there was a clear definition of power: John on creative, Ed on technical, and Jobs on business and financial. There was an implicit trust of each other, as well as one guy with the final word (Steve).

  • A lot of times, people don’t know what they want until you show it to them.

  • He set up a test jig that aimed a red helium-neon laser beam into the fiber to help him align it. “I remember so vividly moving the fiber over, and when the laser spot hit the core, all of a sudden I got this flash of light”… recalled Keck… [Confused at first,] eventually he realized that the light had gone back and forth through all 200 meters of fiber… He had before him the clearest glass ever made.”95, 96 Although not the final act of the story, this transparency breakthrough was the development that achieved compelling value. Optical transmission radically reduced the price of a vital human need: interaction at a distance. Fiber optics would quickly become one of the great enabling technologies of the last century, profoundly changing nearly every realm of society:

  • Steve Jobs famously proselytized for “insanely great products.” This was not whimsical, but deeply strategic. Invention not only opens the door to Power, it also fuels market size, the other half of the Fundamental Equation of Strategy.

  • Thus, the decisive attainment of Power often syncs up with the establishment of the Barrier.