This is inspired by the book "The Profit Zone". It's been something like 20 years since I read that book, but I've used this index to guide many of the business and investment decisions I've made since that time.

strategic-control-point-index.md

Strategic control point index

Businesses with high strategic control have more sustainable profitability, stronger competitive advantage, and higher valuations. Many business hit multiple strategic control points, and it's possible for businesses to combine multiple control points, even low control, to achieve a much greater level of strategic control in aggregate.

High strategic control:

• 10 — Monopoly, patent, own the standard
• 9 — Control of value chain
• 8 — Control of supply, string of superdominant positions
• 7 — Control of distribution, owning the customer relationship, owning customer information flow

Medium strategic control:

• 6 — Brand, trademark, copyright
• 5 — Two-year product development lead

Low strategic control:

• 4 — One-year product development lead, unique organizational culture
• 3 — Commodity with 10 to 20 percent cost advantage

No strategic control:

• 2 — Commodity with cost parity
• 1 — Commodity with cost disadvantage