Business strategy with Hamilton Helmer (author of 7 Powers)

Hamilton Helmer is one of the world’s leading experts on business strategy and the author of the seminal book 7 Powers: The Foundations of Business Strategy, which provides a comprehensive framework for understanding what it really takes to achieve and sustain a competitive advantage. With more than three decades of experience in the strategic consulting industry, Hamilton has advised over 200 companies-from burgeoning startups to Fortune 100 giants-on how to identify, build, and leverage their unique strategic powers. In our conversation, we discuss:
• Potential sources of power that startups should develop from an early stage
• Common misconceptions among companies about the types of power they possess
• How power relates to strategy
• The difference between a moat and a power
• Practical strategies for non-leaders to leverage insights about power and strategy in their work
• AI’s impact on competitive advantages and barriers to entry
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Find the transcript and references at: www.lennysnewsletter.com/p/bu...
Where to find Hamilton Helmer:
• X: / hamiltonhelmer
• LinkedIn: / hamilton-helmer-42983
• Website: 7powers.com/
Where to find Lenny:
• Newsletter: www.lennysnewsletter.com
• X: / lennysan
• LinkedIn: / lennyrachitsky
In this episode, we cover:
(00:00) Hamilton’s background
(04:08) When power becomes important
(08:24) How strategy relates to power
(12:09) How power informs strategy
(14:46) The sequence of powers
(21:13) Common misconceptions
(24:39) Network effects vs. network economies
(26:58) Uber’s success
(29:16) Moats vs. powers
(31:12) Strategies for non-leaders to leverage power and strategy
(37:51) Advice on how to become a strategic thinker
(39:27) AI’s impact on the seven powers
(45:43) Why moving fast is not a power
(50:24) Three things that create value in a company
(51:16) The debt trajectory of the U.S.
(56:35) Optimism for the future
(59:25) Lightning round
Production and marketing by penname.co/. For inquiries about sponsoring the podcast, email [e-mail].
Lenny may be an investor in the companies discussed.

[@leadgenjay]

The insights on leveraging unique strategic powers for startups were spot on.

[@Drackomass]

So excited for this one, love love love Helmer.

[@jebyjames]

This is gold :)

[@RichardFitzDublin]

My favourite Lenny Podcast guest so far. Such a brilliant mind and engaging speaker. I especially loved the bit where Lenny asked about favourite recent product. Many might say a mass consumer product like an Apple product or some other piece of tech, but Hamilton referred to a 150 year old hand woven Persian rug that when he sees it every day it uplifts him because of its beauty, not utility. Inspiring. Keep up the great work Lenny and team.

[@LennysPodcast]

So true on that last point!

[@MatthewKunish]

When talking about US debt he references a recent inequality study and he states that air quality over the last 80 years is not changed. Does anybody have that source?

[@fin8178]

This is literally the dumbest podcast I've listened to. These are like the most obvious things in business. It's not even close. In order to have a competitive advantage, your company should make a lot of money. Thank God someone just told me that