strategy-craft

Strategy Craft Skill

Purpose

Strategy is a function of segmentation and differentiation. This skill provides the frameworks for both, plus the connective tissue that turns analysis into a strategy document that actually drives decisions.

Based on Shreyas Doshi's strategy framework and Hamilton Helmer's 7 Powers.

Core Principle

Strategy is about making choices that are hard to reverse and create compounding advantages.

Good strategy has three properties:

1. It says no. If your strategy doesn't reject opportunities, it's not a strategy.
2. It's different. If a competitor could write the same strategy, it's not differentiated.
3. It compounds. Each decision makes the next decision easier.

Segmentation Framework

The Rule: Needs Over Demographics

Segment by what users NEED and DO, not who they ARE.

Good segmentation dimensions (in priority order):

1. Needs-based: What specific problems do they need solved?
2. Behavioral: How do they currently solve the problem?
3. Context of use: What environment are they operating in?

Bad segmentation dimensions:

• Demographics (age, gender, location) — too broad, don't predict behavior
• Psychographics (personality types) — unmeasurable, untargetable
• Composite personas (marketing fiction) — combine segments that behave differently

5-Point Validation Test

Every segment must pass ALL five:

Test	Question
Consistent needs	Do members share similar needs distinct from other segments?
Product-specific	Is this relevant to YOUR product, not just the market?
Targetable	Can you predictably find and reach these people?
Prioritizable	Can you rank segments meaningfully?
Winnable	Can you realistically serve them better than alternatives?

Segment Scoring

Dimension	What It Measures
Reach	How large is the segment?
Underserved degree	How poorly served by current alternatives?
Differentiation potential	Can you build something meaningfully better for them?
Ease of targeting	Can you find and reach them efficiently?

Differentiation Framework

Differentiation is a function of:

1. User needs — What the priority segment actually needs
2. Alternatives — What they currently use (including "do nothing")
3. Unique assets — What you have that others don't
4. Industry direction — Where the market is heading
5. Creative choices — Non-obvious design decisions
6. Chosen segments — Who you've decided to serve

7 Powers (Hamilton Helmer)

Power	Definition	How to Build It
Scale Economies	Unit cost declines with volume	Invest in infrastructure that amortizes
Network Effects	Value increases with more users	Build features where more users = better product
Switching Costs	Users face cost to leave	Make your product hold important user data, integrations, workflows
Branding	Higher perceived value for your brand	Consistent quality, emotional connection, community
Cornered Resource	Exclusive access to valuable input	Proprietary data, key hires, exclusive partnerships
Counter-Positioning	New model incumbents can't adopt	Build something that would cannibalize competitors' core business
Process Power	Organization capabilities that can't be copied	Deep domain expertise, operational excellence, culture

Differentiation Classification

Type	What It Means	Priority
Differentiator	Users choose us BECAUSE of this	Invest heavily
MMR	Users reject us WITHOUT this	Build to parity
Neutralizer	Removes a reason to NOT choose us	Build to "good enough"

Strategy Template

One-Sentence Strategy

"[Product] wins by [differentiation] for [segments] against [alternatives]."

Must be: specific, choosy, actionable, falsifiable.

Full Strategy Structure

1. One-sentence strategy
2. Target segments — Who we serve, who we don't, and why
3. Market context & map — Where the market is headed, who the players are
4. Strategic pillars (2-6) — The bets that define our differentiation
5. Non-priorities — What we're deliberately NOT doing (the most important section)
6. 1-2 year roadmap — Now/Next/Later with metrics
7. Leading & lagging indicators — 2-4 metrics that tell us if the strategy is working

Non-Priorities Framework

The most important part of strategy:

Category	Description
Trade-offs	"We choose X over Y because..."
Lower priority	"We acknowledge Z matters but won't invest because..."
Table stakes	"We'll maintain parity on [features] but won't differentiate here"
Below table stakes	"Competitors do [X] and we deliberately don't because..."
Reassessment triggers	"We'd reprioritize if [specific market change]"

Strategy Stress Test

Before finalizing any strategy, pass these 5 tests:

1. Is it a real strategy? Does it make hard choices, or does it say "we'll do everything"?
2. Can you say no with it? Give an example of an opportunity you'd reject.
3. Is it differentiated? Could a competitor write the same strategy?
4. Is it achievable? Do you have the resources and capabilities?
5. Is it measurable? Can you tell in 6 months if it's working?