Hat & Tat | S1E8 | 7 Powers and Hamilton Helmer Pt. 2

Craig and Steve dive into the second installment of their three-part breakdown of Hamilton Helmer’s classic book, 7 Powers: The Foundations of Business Strategy. Focusing on the fast-growing "takeoff" phase of a company, the hosts unpack the next 3 powers: network economies, scale economies, and switching costs. From Waze’s billion-dollar acquisition and Costco’s razor-thin retail machine to the sticky software running your local restaurant, they explore what it actually takes to build an unbeatable moat as you scale.TakeawaysLeverage network velocity: Build products where every new user inherently increases value for all existing users, creating a self-propelling adoption loop that forces competitors to play catch-up.Scale for structural cost advantages: Lower your per-unit operating costs through massive volume and efficiency so smaller entrants are structurally forced to operate at a financial disadvantage.Bake in friction from day one: Design deeply integrated switching barriers early into your core product rather than trying to awkwardly bolt them on later.ResourcesListen to Hamilton Helmer on Invest Like the BestListen to Hamilton Helmer on AcquiredRead Hamilton Helmer's 7 Powers