Just had to read this book for work and I didn’t understand the vast majority of it. I’m finding it difficult to find any simple explanations elsewhere online, and my music degree-having brain doesn’t know what to make of it.
In: Economics
Imagine you’re building a really cool lemonade stand. Hamilton Helmer’s 7 Powers are like special tools to help your stand be the best and make sure no one can easily copy you.
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.
These tools help your lemonade stand be the best, and make sure other kids can’t easily compete with you.
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