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A Dazzle summary of Blitzscaling 51DlsAs1p7L._SX331BO1,204,203,200 (Intro,…

- - - - Argument: Blitzscaling is risky, but perhaps less so than coming second
- - - - Village - 100s
      - City - 1000s
      - Nation - 10000s
      - Tribe - 10s
      - Family - 1-9
    - - Blitzscaling is both an offensive strategy and defensive strategy
        
        Blindside the market
        
        Leverage your lead for long term comp advantages
        
        Open up access to capital by being the market leader
        
        Set a pace leaving competitors gasping and unable to respond/catchup, create differentiated strategies. i.e. Get to determine the playing field
      - Blitzscaling thrives on positive feedback loops - the company that grows to scale first reaps significant competitive advantages
        
        McKinsey - "Grow Fast or Die Slow"
        
        First scaler advantages - e.g. talent and capital flood in
        
        Twitter Vs Tumblr - were those different outcomes dictated by ability to draw on a rich ecosystem of experienced talent
      - Blitzscaling also comes with massive risks
        
        FB's "Move fast and break things" was creating more problems requiring fixes than any speed advantages that were hoped for
    - - 1) Establish Product/Market fit
      - 2) Blitzscale to achieve critical mass and market dominance ahead of the competition
      - 3) Relax into Fastscaling
      - 4) Downshift to classic scale up growth
      - Applies not only to whole companies but to products and service lines
    - - If you win, efficiency isn't that important. If you lose, efficiency is completely irrelevant
      - Cautious, risk-averse and measured approaches lose out in the scramble for new markets or disruption of old ones
      - Examples: Amazon, Dropbox ("Harpooning a whale")
      - Need more money in reserve to cope with the mistakes
      - You must convince the market for capital and the market for talent (including Clients and Partners as well as employees) and use this fuel to go from 1 to 1 billion in an incredibly compressed timeframe
    - - 1) Deliberately make decisions and commit to them even when confidence levels are substantially lower than 100%...in order to move fast.
      - 2) Mitigate the inevitable risks by making clear hypotheses and measuring against them to understand and monitor what drives your success or failure
      - 3) Its not simply a matter of rapid growth, blitzscaling is "Prioritising speed over efficiency in the face of uncertainty"
      - 4) Blitzscaling is not: Efficiency over speed in uncertainty (Startup Growth), Efficiency over speed in certainty (Scale up growth) or Speed over efficiency in certainty (Fastscaling). It is Speed over efficiency in uncertainty
    - - 1 - Business model innovation
        
        The biggest successes have leaders who are not just tech/product nerds but also business nerds This is key. Most of today's successful companies have figured out the right combination of services to bring together and the way to make money from these, rather than pioneering new tech.
        
        "If technology was enough, research labs would be churning out billion dollar companies regularly. They are not"
        
        Growth factors must be built into the business model - e.g. Network effects
      - 2 - Strategy Innovation
        
        Extreme growth should be the STRATEGY, not just the desire or goal. It must be built into the business model
        
        Oddly, Blitzscaling goes even further than just a strategy on extreme growth. It requires doing things that don't make sense according to traditional business thinking - even increasing the chances a business could fail in order also to increase the chances of WINNING THE MARKET ENTIRELY.
        
        The greatest risk is to move too slowly in a winner-takes-all market and let the competition win first-scaler advantage
      - 3 - Management Innovation