7 Powers: The Foundations of Business Strategy
framework · 7 Powers: The Foundations of Business Strategy (2016)
A strategic framework identifying seven sources of persistent business value: scale economies, network economies, counter-positioning, switching costs, branding, cornered resource, and process power.
Core Concepts
The Problem
Why do some companies sustain competitive advantage and capture value for years while others don't?
The Claim
Durable business value comes from one or more of seven distinct power sources that persist against competition.
Key Evidence
- •The framework has been widely cited and applied in business strategy since its publication.
Practical Implication
Strategic analysis should identify which of the seven powers a business actually holds, rather than relying on undifferentiated 'competitive advantage' language.
Nuance & Limits
Powers are not all equally strong or available; the relevant power depends on industry structure and stage.
Source Material
Citation Density
Growing
Gaps
- ⚠ No single power is sufficient for all industries; the framework is analytical rather than predictive.
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