(1) What is Power?

• A set of conditions which create persistent differential returns
• Needs benefit so that FCF can materially increase
• Needs barrier so that returns cannot be arbitraged out

(2) Strategy v/s strategy

• Strategy is the discipline v/s strategy is for a given company
• Strategy is the Discipline of studying fundamental business value drivers
• strategy is the route taken by a company to continuing Power in significant markets

(3) Value = Market Scale * Power

• Hence, being in a significant market matters

(4) The 7 Powers:

• Scale Economies
• Network Economies
• Switching Cost
• Counter Positioning
• Cornered Resource
• Brand
• Process Power

(5) Powers Progression