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The framework that helps companies like Netflix to become a leader.

Netflix est devenu leader mondial grâce à un framework produit précis. Découvrez ce modèle et comment l'appliquer à votre SaaS pour booster rétention et NRR.

has become a leader thanks (among other things) to a specific model:

How to ensure a considerable advantage over your competitors? Here is the framework used 👇

This is the 𝗛𝗔𝗥𝗗 𝗧𝗢 𝗖𝗢𝗣𝗬 𝗔𝗗𝗩𝗔𝗡𝗧𝗔𝗚𝗘 framework from "7 Powers" by Hamilton Helmer.

In this book, he talks about HTCA through "07 powers", which are listed below:

• 💰 Economies of scale

• 🔗 Network effects

• 👥 Counter-positioning

• 🔄 Switching costs

• 🏷️ Branding

• 🔒 Cornered resources

• 📈 Process power

I've written down the framework at Eldo to see how our platform stacks up on these "powers". Are we HTC on this power or not, if we are progressing or even if we want to go there?

You don't have to be good at all the "powers". Identify which ones will impact your customer most and get strong in HTC on these axes. This will give you an incredible advantage.

Understanding what benefits are most relevant to your customers can help you develop a unique value proposition which attracts customers and makes it challenging to be copied-pasted by competitors.

🦸 The 07 powers

💰 Scale Economies: This advantage is gained when a business has a lower cost structure than its competitors due to its ability to spread fixed costs over a larger production volume. This allows the business to offer lower prices while maintaining higher profit margins.

🔗 Network Effects: This advantage is created when the value of a product or service increases as more users adopt it. It creates a virtuous cycle where more users attract more users, making it difficult for competitors to gain market share.

👥 Counter-Positioning: This advantage is achieved by challenging the dominant player in the market by offering a differentiated product or service that appeals to a specific niche or segment of the market.

🔄 Switching Costs: This advantage is created when it is difficult or costly for customers to switch to a competitor's product or service. It can be achieved by building a solid brand or creating a product integrated into the customer's workflow or business processes.

🏷️ Branding: This advantage is created when a business has a strong brand identity that is recognized and valued by customers. A strong brand can lead to customer loyalty and make it difficult for competitors to enter the market.

🔒 Cornered Resources: This advantage is created when a business has exclusive access to a critical resource or asset that is difficult for competitors to replicate or acquire. This can include patents, comex members, experts, proprietary technologies, or access to key distribution channels…

📈 Process Power: This advantage is created by developing a unique and efficient production process that allows a business to lower costs, improve quality, or deliver products or services faster than competitors.

Answering these power will help you to have a high-level assumption to define a suitable & efficient Product vision & Product strategy.

In summary, you have benefits and “limitations” to use this framework. It is not a magical answer to be the leader of your business.

To be successful in the business, you need more than these powers. Don’t focus ONLY on this framework.