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. 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

tai@wetransform.vn
http://Wetransform.vn
http://Facebook.com/huutaivn