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Blitzscaling

Blitzscaling is pursuing rapid growth by prioritizing speed over efficiency in uncertain environments. It involves growing quickly to achieve critical scale and market leadership in winner-take-all or winner-take-most markets. Examples of proven patterns for blitzscaling include business models based on bits rather than atoms, platforms, free or freemium pricing, marketplaces, subscriptions, and digital goods. There are five stages of organizational scale in blitzscaling: family, tribe, village, city, and nation. Hiring for a blitzscaling company involves bringing in executives at a lower level initially to prove themselves before promoting them.

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688 views29 pages

Blitzscaling

Blitzscaling is pursuing rapid growth by prioritizing speed over efficiency in uncertain environments. It involves growing quickly to achieve critical scale and market leadership in winner-take-all or winner-take-most markets. Examples of proven patterns for blitzscaling include business models based on bits rather than atoms, platforms, free or freemium pricing, marketplaces, subscriptions, and digital goods. There are five stages of organizational scale in blitzscaling: family, tribe, village, city, and nation. Hiring for a blitzscaling company involves bringing in executives at a lower level initially to prove themselves before promoting them.

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minh đức
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Blitzscaling

Prepared by: Huỳnh Hữu Tài


Email: [email protected]
Author of Blitzscaling

http://Wetransform.vn
What is blitzscaling?
Blitzscaling is the pursuit of rapid growth by
prioritizing speed over efficiency in an environment of
uncertainty.

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THE TYPES OF
SCALING

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Why blitzscale?
- The reason you do this is you want to become the
first company to achieve critical scale and build
enduring market leadership.
- Winner-take-all/Winner-take-most

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Rules of Blitzscaling

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Example - Amazon
Amazon: blitzscale multiple times with Amazon
marketplace, Amazon Web Service…

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All are uncertainty,
what are the proven?
It’s business model innovation

1. PROVEN PATTERN #1: BITS RATHER THAN ATOMS


2. PROVEN PATTERN #2: PLATFORMS
3. PROVEN PATTERN #3: FREE OR FREEMIUM
4. PROVEN PATTERN #4: MARKETPLACES
5. PROVEN PATTERN #5: SUBSCRIPTIONS
6. PROVEN PATTERN #6: DIGITAL GOODS
7. PROVEN PATTERN #7: FEEDS

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4 Key Growth Factors (1)
1. Market size
2. Distribution
3. Gross margin
4. Network effects

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4 Key Growth Factors (2)
Great products are certainly a positive—but the cold
and unromantic fact is that a good product with great
distribution will almost always beat a great product
with poor distribution.

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2 Key Growth Limiters
1. Lack of product/market fit
2. Optional Scalability

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When to blitzscale?
1. When to start blitzscaling?
- First-scaler advantage
- Learning curve
- Competition
2. When to stop blitzscaling?
- Run out of overhead
- Speed and momentum are not important

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THE FIVE STAGES OF
BLITZSCALING

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Organizational Scale (OS)

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OS1: Family (1)

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OS1: Family (2)

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OS2: The Tribe (1)

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OS2: The Tribe (2)

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OS2: The Tribe (3)

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OS3: Village (1)

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OS3: Village (2)

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OS3: Village (3)

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OS3: Village (4)

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OS3: Village (5)

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OS4: City

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OS5: Nation

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Hiring for Blitzscaler
1. Hire someone who is already a known quantity to
at least one member of the team.
2. Bring the new executive in at a lower level initially
and let the executive prove himself or herself.
3. Once the executive has earned the team’s trust
and credibility, consider promoting him or her.

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Blitzscaling within a larger
organization
1. Leverage the existing scale
2. Iteration
3. Longevity
4. M&A

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THANK YOU

Huỳnh Hữu Tài


[email protected]
http://Wetransform.vn
http://Facebook.com/huutaivn

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