Many startups focus on product but overlook the importance of distribution. Ideally, the market is also growing quickly, meaning markets that seem small initially can grow to become massive. Market SizeĪ big market has a large number of potential customers and efficient channels for reaching those customers. There isn’t a universal business model that works for every company, but most great business models overlap with these four growth factors. You accept the risk of making mistakes and operating inefficiently, in exchange for moving faster. When you blitzscale, you make decisions before knowing exactly how things will play out. Third prize is you’re fired.”īlitzscaling drives fast growth by prioritizing speed over efficiency, even in an environment of uncertainty. As in Glengarry Glen Ross, “second prize is steak knives. If you win, efficiency isn’t important if you lose, efficiency is irrelevant. The risk isn’t inefficiency or wasting money - the risk is playing it too safe.
Prioritize correctness and efficiency over speed.īut in certain markets today, this is too slow. Take calculated risks that you can measure and afford. Traditional business strategy involves gathering information and making decisions with a certain degree of confidence. The ability to reach millions (or billions) of users and service their needs automatically, at nearly no marginal cost, creates situations where a powerful company becomes ever more powerful through positive feedback loops, like network effects and virality. The enabler is the Internet - specifically, its power of zero-marginal-cost distribution. The first company to achieve a critical mass can dominate its industry for a long time. In markets where Internet technology is a dominant factor, there are powerful winner-take-all dynamics. 1-Page Summary 1-Page Book Summary of Blitzscaling
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