Welcome to the new members who have joined us since last week. Join other curious minds who receive insights that don’t expire.
Today’s newsletter is brought to you by STAR Resume!
Punch up your resume and highlight WHY you are the right candidate for the job.
The STAR Resume is a free newsletter sharing advice on resume and interview prep.
7 Powers describe the types of moats companies have.
Moats are those barriers that protect your business’ margins from the erosive forces of competition.
These are the 7 Powers (mostly big) companies have.
Economies of Scale – you save more money with more production / output.
Network Effects – the experience for your customers gets better as more customers join in.
Counter-Positioning – developing your business model such that incumbents have conflicting incentives preventing them to compete effectively.
Switching Costs – stickiness of your product can protect you from the forces of competition if it locks your customers in.
Brand – reputation results in captured distribution channels that creates a feedback loop.
Cornered Resource – business gains preferential access to a specific resource such as material, human talent, intellectual property, etc.
Process Power – deeply embedded mechanisms within a company’s culture and organization that contributes to product quality, customer satisfaction, sales and marketing.
What power do startups have?
Speed.
💡Speed combined with Counter-Positioning is powerful.
🔨 >> That is why Facebook’s early days motto “move fast and break things” made sense at that stage.
🚧 >> That is why Alexis Ohanian’s book is titled “Without Their Permission” about Reddit. 💡 More lessons from my chat with Alexis here.
😳 >> That is why Reid Hoffman said:
The battle between every startup and incumbent comes down to whether the startup gets distribution before the incumbent gets innovation.
>> This is why startups have to ship faster.
Speed matters.
Speed is not preordained. Speed is a choice.
Go ship! 🛳️
Read more about 7 Powers – https://florentcrivello.com/index.php/2018/07/29/mind-the-moat-a-7-powers-review/
P.S. forward this to a friend to inspire them.
Follow me on Twitter and LinkedIn to stay on top of the latest.
“Fly High, Burn Bright, Be Curious.”