$npx -y skills add Productfculty-aipm/PM-Copilot-by-Product-Faculty --skill seven-powersUse this skill when the user asks about "7 powers", "Hamilton Helmer", "competitive moats", "how do we build a moat", "sustainable competitive advantage", "defensibility", "what makes us hard to copy", "long-term defensibility", or wants to evaluate which structural competitive a
| 1 | # 7 Powers — Competitive Moat Analysis |
| 2 | |
| 3 | You are applying Hamilton Helmer's 7 Powers framework to evaluate which structural competitive advantages the user's product has, which can be built, and which are absent. |
| 4 | |
| 5 | 7 Powers are structural — they persist because of an inherent dynamic, not just because of good execution. Good execution is necessary but not sufficient for durable advantage. |
| 6 | |
| 7 | ## Step 1 — Load Context |
| 8 | |
| 9 | Read `memory/user-profile.md` for product stage, business model, and current bets. Read `context/company/competitors.md` if it exists. |
| 10 | |
| 11 | ## Step 2 — The 7 Powers Evaluated |
| 12 | |
| 13 | For each power, assess: **Strong / Emerging / Opportunity to Build / Not Applicable** |
| 14 | |
| 15 | **1. Scale Economies** |
| 16 | Definition: Cost per unit falls as volume increases, making it hard for smaller competitors to compete on price. |
| 17 | Questions to evaluate: Does cost per user, per transaction, or per unit decrease materially as we scale? Do we have fixed costs that become advantageous at scale? |
| 18 | Typical products: Cloud infrastructure, marketplaces with large supplier bases, media with high fixed production costs. |
| 19 | Build path: Focus on growing volume in a specific segment to achieve cost advantages before expanding. |
| 20 | |
| 21 | **2. Network Effects** |
| 22 | Definition: The product becomes more valuable as more users join. |
| 23 | Types: |
| 24 | - Direct: Each user directly adds value for other users (social networks, communication tools) |
| 25 | - Indirect: More users on one side attract more on the other (marketplaces, platforms) |
| 26 | - Data: More users generate more data that improves the product for everyone |
| 27 | Questions to evaluate: Does adding user 1,000 make the experience materially better for user 500? What specific mechanism creates the network value? |
| 28 | Build path: Find the minimum viable network — the smallest number of users at which the network effect becomes self-reinforcing. |
| 29 | |
| 30 | **3. Switching Costs** |
| 31 | Definition: Users incur significant cost (time, money, risk, learning) when they try to leave. |
| 32 | Types: Data lock-in, integration lock-in, workflow embedment, team training investment, organizational habit |
| 33 | Questions to evaluate: What would a user lose if they switched to a competitor tomorrow? How long would it take to replicate their current setup elsewhere? |
| 34 | Build path: Increase integration surface, deepen workflow embedment, make data portable enough to reduce anxiety but sticky enough to create switching cost. |
| 35 | |
| 36 | **4. Branding** |
| 37 | Definition: Trust and perception built over time that commands a price premium competitors can't replicate. |
| 38 | Questions to evaluate: Do users choose us over technically equivalent alternatives because of the name? Do we command a price premium in a category with cheaper alternatives? |
| 39 | Build path: Consistent, distinctive communication; earned trust through quality and transparency; category definition leadership. |
| 40 | |
| 41 | **5. Cornered Resource** |
| 42 | Definition: Exclusive or preferential access to a critical resource that competitors can't easily obtain. |
| 43 | Types: Proprietary data, exclusive partnerships, unique talent, patents, regulatory licenses |
| 44 | Questions to evaluate: Do we have data, partnerships, or talent that gives us a capability others can't easily replicate? |
| 45 | Build path: Structure agreements and data strategies to maximize exclusivity; hire the category's defining talent before competitors do. |
| 46 | |
| 47 | **6. Counter-Positioning** |
| 48 | Definition: A business model that incumbents can't copy without hurting their existing business. |
| 49 | Questions to evaluate: Would it damage an incumbent's business if they adopted our business model? What is their incentive NOT to compete with us in the way we compete? |
| 50 | Build path: Design the business model deliberately to exploit an incumbent's constraint or conflict of interest. |
| 51 | |
| 52 | **7. Process Power** |
| 53 | Definition: Accumulated organizational know-how and processes that create compounding advantages. |
| 54 | Questions to evaluate: Do we have processes or capabilities that have compounded over time and would take competitors years to replicate even with resources? |
| 55 | Build path: Document and systematize the processes that produce quality; make them teachable and scalable; measure and improve them deliberately. |
| 56 | |
| 57 | ## Step 3 — Current Power Assessment |
| 58 | |
| 59 | For the user's product, assess each power with a brief rationale: |
| 60 | |
| 61 | | Power | Status | Evidence | Build Path | |
| 62 | |---|---|---|---| |
| 63 | | Scale Economies | [Strong/Emerging/Opportunity/N/A] | [Why] | [How] | |
| 64 | | Network Effects | [Strong/Emerging/Opportunity/N/A] | [Why] | [How] | |
| 65 | | Switching Costs | [Strong/Emerging/Opportunity/N/A] | [Why] | [How] | |
| 66 | | Branding | [Strong/Emerging/Opportunity/N/A] | [Why] | [How] | |
| 67 | | Cornered Resource | [Strong |