📖 Book
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Intermediate
Why we picked it When one player holds 80 percent share, the real question is not the number but why they hold it: a genuine barrier, or just inertia a challenger can erode. Helmer's seven Powers (scale economies, network effects, switching costs, counter-positioning, branding, cornered resource, process power) give you a precise checklist to test which one, if any, actually protects the incumbent. If you cannot name the Power, the share is softer than it looks and the market being real is the good news.
7 Powers: The Foundations of Business Strategy
From Deep Strategy Inc. by Hamilton Helmer About 224 pages
- A moat needs both a benefit and a barrier competitors cannot cheaply copy; market share alone is neither.
- Counter-positioning explains how a challenger wins precisely because the incumbent cannot respond without hurting its own core business.
- Run the incumbent's dominance through the seven Powers: if none holds up, the share is inertia, not defence.