Blitzscaling
Prepared by: Huỳnh Hữu Tài Email: tai@wetransform.vn
Author of Blitzscaling
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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. 2. 3. 4. 5. 6. 7.
PROVEN PATTERN #1: BITS RATHER THAN ATOMS PROVEN PATTERN #2: PLATFORMS PROVEN PATTERN #3: FREE OR FREEMIUM PROVEN PATTERN #4: MARKETPLACES PROVEN PATTERN #5: SUBSCRIPTIONS PROVEN PATTERN #6: DIGITAL GOODS PROVEN PATTERN #7: FEEDS
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4 Key Growth Factors (1) 1. 2. 3. 4.
Market size Distribution Gross margin 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. 2. 3. 4.
Leverage the existing scale Iteration Longevity M&A
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THANK YOU Huỳnh Hữu Tài tai@wetransform.vn http://Wetransform.vn http://Facebook.com/huutaivn