You stop blitzscaling when your business it outgrowing your current strategy. Blitzscaling is used for a specific purpose for a limited time, after which you turn to fastscaling or another type of company growth. Startups who act quickly can evade incumbents who aren’t focusing on the space.īlitzscaling are like fighter jet afterburners - you don’t switch them on and never turn them off.Can somebody else realize this opportunity earlier than me? If yes, moving faster reduces risk of competition.Blitzscaling often doesn’t work if another company has first-scaler advantage.The mechanisms that confer first-scaler advantage include network effects, returns to data, economies of scale. These opportunities often involve positive feedback loops.Often, this is when a technological innovation upends existing markets, creating large opportunities that incumbents are not well-suited to capture.Market size and gross margins create enormous potential value, and there isn’t a dominant market leader.
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