“Any strategy framework, to be broadly useful to a businessperson, must address all the key strategy issues facing an organization. Hamilton has long been been aware of the deficiencies in existing frameworks. His solution? To forge ahead with entirely novel conceptual advances, and then to bind these together into a united whole.” This is what Reed Hastings, CEO and co-founder of Netflix, writes in the book introduction!
The book is an absolute must read if you are a founder building a business or a long-term investor and betting on the durable long-term competitive strengths of the business. Hamilton Helmer, the author, defines the meaning of strategy and power:
Strategy: The study of the fundamental determinants of potential business value
Power: The set of conditions creating the potential for persistent differential returns
and then goes to show that a business derives its Potential Value = [Market Scale] * [Power]. Hamilton lays out the seven sources of Powers for a business, all from first principles, and illustrates these with very good examples from the real world. The seven powers: Scale economics, Network economics, counter-positioning, switching costs, branding, cornered resource, process power.
My favorite power is the one called “Counter-Positioning”. I have read all the popular strategy books and I don’t think I have come across this concept as clearly articulated in any other book. He defines Counter-Positioning as follows: “A newcomer adopts a new, superior business model which the incumbent does not mimic due to anticipated damage to their existing business.”
Here is what Reed Hastings says about Counter-Positioning in the book’s introduction. “Throughout my career I have often observed power incumbents, once lauded for their business acumen, failing to adjust to a new competitive reality. The result is always a stunning fall from grace. A superficial thinker might pin this on lack of vision and leadership. Not Hamilton. By inventing the concept of Counter-Positioning, he was able to peel back the layers into the deeper reality of these situations. Rather than lacking vision, Hamilton established, these incumbents are in fact acting in an entirely predictable and economically rational way. Our earlier battle with Blockbuster bore out this notion”
Hamilton is not only an author and an academic. He was also an early investor in Netflix and had tremendous impact on the strategy at Netflix and many other organizations. This book is a must read. I strongly recommend it!
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Must read strategy book for every founder and investor today!
Reviewed in the United States on December 2, 2019
“Any strategy framework, to be broadly useful to a businessperson, must address all the key strategy issues facing an organization. Hamilton has long been been aware of the deficiencies in existing frameworks. His solution? To forge ahead with entirely novel conceptual advances, and then to bind these together into a united whole.” This is what Reed Hastings, CEO and co-founder of Netflix, writes in the book introduction!The book is an absolute must read if you are a founder building a business or a long-term investor and betting on the durable long-term competitive strengths of the business. Hamilton Helmer, the author, defines the meaning of strategy and power:Strategy: The study of the fundamental determinants of potential business valuePower: The set of conditions creating the potential for persistent differential returnsand then goes to show that a business derives its Potential Value = [Market Scale] * [Power]. Hamilton lays out the seven sources of Powers for a business, all from first principles, and illustrates these with very good examples from the real world. The seven powers: Scale economics, Network economics, counter-positioning, switching costs, branding, cornered resource, process power.My favorite power is the one called “Counter-Positioning”. I have read all the popular strategy books and I don’t think I have come across this concept as clearly articulated in any other book. He defines Counter-Positioning as follows: “A newcomer adopts a new, superior business model which the incumbent does not mimic due to anticipated damage to their existing business.”Here is what Reed Hastings says about Counter-Positioning in the book’s introduction. “Throughout my career I have often observed power incumbents, once lauded for their business acumen, failing to adjust to a new competitive reality. The result is always a stunning fall from grace. A superficial thinker might pin this on lack of vision and leadership. Not Hamilton. By inventing the concept of Counter-Positioning, he was able to peel back the layers into the deeper reality of these situations. Rather than lacking vision, Hamilton established, these incumbents are in fact acting in an entirely predictable and economically rational way. Our earlier battle with Blockbuster bore out this notion”Hamilton is not only an author and an academic. He was also an early investor in Netflix and had tremendous impact on the strategy at Netflix and many other organizations. This book is a must read. I strongly recommend it!
Reviewed in the United States on December 2, 2019
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Top reviews from the United States
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Reviewed in the United States 🇺🇸 on December 2, 2019
The book is an absolute must read if you are a founder building a business or a long-term investor and betting on the durable long-term competitive strengths of the business. Hamilton Helmer, the author, defines the meaning of strategy and power:
Strategy: The study of the fundamental determinants of potential business value
Power: The set of conditions creating the potential for persistent differential returns
and then goes to show that a business derives its Potential Value = [Market Scale] * [Power]. Hamilton lays out the seven sources of Powers for a business, all from first principles, and illustrates these with very good examples from the real world. The seven powers: Scale economics, Network economics, counter-positioning, switching costs, branding, cornered resource, process power.
My favorite power is the one called “Counter-Positioning”. I have read all the popular strategy books and I don’t think I have come across this concept as clearly articulated in any other book. He defines Counter-Positioning as follows: “A newcomer adopts a new, superior business model which the incumbent does not mimic due to anticipated damage to their existing business.”
Here is what Reed Hastings says about Counter-Positioning in the book’s introduction. “Throughout my career I have often observed power incumbents, once lauded for their business acumen, failing to adjust to a new competitive reality. The result is always a stunning fall from grace. A superficial thinker might pin this on lack of vision and leadership. Not Hamilton. By inventing the concept of Counter-Positioning, he was able to peel back the layers into the deeper reality of these situations. Rather than lacking vision, Hamilton established, these incumbents are in fact acting in an entirely predictable and economically rational way. Our earlier battle with Blockbuster bore out this notion”
Hamilton is not only an author and an academic. He was also an early investor in Netflix and had tremendous impact on the strategy at Netflix and many other organizations. This book is a must read. I strongly recommend it!
Must read strategy book for every founder and investor today!
Reviewed in the United States 🇺🇸 on December 2, 2019
“Any strategy framework, to be broadly useful to a businessperson, must address all the key strategy issues facing an organization. Hamilton has long been been aware of the deficiencies in existing frameworks. His solution? To forge ahead with entirely novel conceptual advances, and then to bind these together into a united whole.” This is what Reed Hastings, CEO and co-founder of Netflix, writes in the book introduction!Reviewed in the United States 🇺🇸 on December 2, 2019
The book is an absolute must read if you are a founder building a business or a long-term investor and betting on the durable long-term competitive strengths of the business. Hamilton Helmer, the author, defines the meaning of strategy and power:
Strategy: The study of the fundamental determinants of potential business value
Power: The set of conditions creating the potential for persistent differential returns
and then goes to show that a business derives its Potential Value = [Market Scale] * [Power]. Hamilton lays out the seven sources of Powers for a business, all from first principles, and illustrates these with very good examples from the real world. The seven powers: Scale economics, Network economics, counter-positioning, switching costs, branding, cornered resource, process power.
My favorite power is the one called “Counter-Positioning”. I have read all the popular strategy books and I don’t think I have come across this concept as clearly articulated in any other book. He defines Counter-Positioning as follows: “A newcomer adopts a new, superior business model which the incumbent does not mimic due to anticipated damage to their existing business.”
Here is what Reed Hastings says about Counter-Positioning in the book’s introduction. “Throughout my career I have often observed power incumbents, once lauded for their business acumen, failing to adjust to a new competitive reality. The result is always a stunning fall from grace. A superficial thinker might pin this on lack of vision and leadership. Not Hamilton. By inventing the concept of Counter-Positioning, he was able to peel back the layers into the deeper reality of these situations. Rather than lacking vision, Hamilton established, these incumbents are in fact acting in an entirely predictable and economically rational way. Our earlier battle with Blockbuster bore out this notion”
Hamilton is not only an author and an academic. He was also an early investor in Netflix and had tremendous impact on the strategy at Netflix and many other organizations. This book is a must read. I strongly recommend it!
Images in this review
Reviewed in the United States 🇺🇸 on February 12, 2020
1) Incisive theoretical frameworks for dynamics that I'd observed intuitively in my work as an investor and board member for startup companies but couldn't quite put my finger on explaining. E.g., that individual company leaders are not sources of sustained competitive advantage ("cornered resources" in Hamilton's terms) because their services can be bought and sold and thus their value is arbitraged by the market. (Note this applies even to company founders - "superstar" teams will typically raise capital at much higher prices than "unknowns". Very often the price paid by investors for this talent does not adequately compensate for the market risk still faced by the fledgling company.)
and 2) whole new ways of thinking about the relationship between market opportunities (what most startups and VCs blindly chase), and the potential for sustainable, differentiated value to be built by a single firm within that market opportunity (Hamilton's concept of "Power"). I can't wait to apply these lessons to my own career going forward, and will be recommending Hamilton's ideas to all companies and entrepreneurs I work with from now on!
One of the very best business books I've read in my career
Reviewed in the United States 🇺🇸 on February 12, 2020
I work as a venture capitalist in Silicon Valley, and first heard about this hidden gem of a book from a fellow VC. Having now read it, I can say it is more than just a gem - this is one of the very best business and strategy books written in the past 30 years, up there with Innovator's Dilemma, Lean Startup and Good to Great. As you can see from the photo, I've covered nearly every page in notes and highlights. In reading it, I found Hamilton providing both:Reviewed in the United States 🇺🇸 on February 12, 2020
1) Incisive theoretical frameworks for dynamics that I'd observed intuitively in my work as an investor and board member for startup companies but couldn't quite put my finger on explaining. E.g., that individual company leaders are not sources of sustained competitive advantage ("cornered resources" in Hamilton's terms) because their services can be bought and sold and thus their value is arbitraged by the market. (Note this applies even to company founders - "superstar" teams will typically raise capital at much higher prices than "unknowns". Very often the price paid by investors for this talent does not adequately compensate for the market risk still faced by the fledgling company.)
and 2) whole new ways of thinking about the relationship between market opportunities (what most startups and VCs blindly chase), and the potential for sustainable, differentiated value to be built by a single firm within that market opportunity (Hamilton's concept of "Power"). I can't wait to apply these lessons to my own career going forward, and will be recommending Hamilton's ideas to all companies and entrepreneurs I work with from now on!
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Reviewed in the United States 🇺🇸 on February 7, 2022
Reviewed in the United States 🇺🇸 on March 20, 2022
When I look at reviews I usually look at 3’s first because they are usually about the writing or content of the book and not the condition.
Most entrepreneurs are not analytical and i was in the first chapter and quickly realised that it's geared to high C’s on the disc assessment. Hence the picture I included.
Not for normal consumption or an easy read. I thought if I could utilize just one thing it wouldn't be a total waste money but it's geared toward software or huge corporations not digital CEOs.
Most entrepreneurs are not analytical and i was in the first chapter and quickly realised that it's geared to high C’s on the disc assessment. Hence the picture I included.
Not for normal consumption or an easy read. I thought if I could utilize just one thing it wouldn't be a total waste money but it's geared toward software or huge corporations not digital CEOs.
Images in this review
Reviewed in the United States 🇺🇸 on November 13, 2020
Top reviews from other countries
Mallika
Finally an intersection between Silicon Valley and Value Investors!
Reviewed in the United Kingdom 🇬🇧 on January 25, 2021
Mallika
Reviewed in the United Kingdom 🇬🇧 on January 25, 2021
This book will be good for value investors, tech startup founders and corporate execs. That's a rare trio to serve in one book.
I found the "counterpositioning" power the most compelling in terms of new thinking. The example given is Vanguard vs asset managers. Previously I'd seen asset managers as choosing to charge active management fees, the counterpostioning chapter made me realise they had no choice.
While tech founders might find a quick read useful, I would encourage professional investors to read it closely and learn the framework Hamilton Helmer has outlined.
The charts and "math" are very useful as you go deeper into the concepts, but you can easily gain much by sticking to just the text.
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tibi
Dives way deeper than most books
Reviewed in the United Kingdom 🇬🇧 on November 28, 2021Andrew Beurschgens, a passionate BlackBerry user
Great restatement of all things strategic
Reviewed in the United Kingdom 🇬🇧 on September 8, 2018Amazon Customer
One of the best books on strategy ever
Reviewed in the United Kingdom 🇬🇧 on April 27, 2020
