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 — Brought to you by: • WorkOS—Modern identity platform for B2B SaaS, free up to 1 million MAUs: https://workos.com/lenny • Vanta—Automate compliance. Simplify security: https://vanta.com/lenny • Paragon—Ship every SaaS integration your customers want: https://www.useparagon.com/lenny Find the transcript and references at: https://www.lennysnewsletter.com/p/business-strategy-with-hamilton-helmer Where to find Hamilton Helmer: • X: https://twitter.com/hamiltonhelmer • LinkedIn: https://www.linkedin.com/in/hamilton-helmer-42983/ • Website: https://7powers.com/ Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/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 https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. Lenny may be an investor in the companies discussed.