Blitzscaling: The Lightning-Fast Path to Building Massively Valuable Companies

by Reid Hoffman

The first technique of blitzscaling is to design an innovative business model that can truly grow.

company’s business model describes how it generates financial returns by producing, selling, and supporting its products.

characteristics that allow them to quickly achieve massive scale and sustainable competitive advantage.

best blitzscalers study the different types of network effects and design them into their business models.

Companies like Uber subsidize their customers in an attempt to manipulate the demand curve to reach that tipping point faster; the bet is that losing money in the short term may allow you to make money in the long term, once you’re past the tipping point.

Geoffrey Moore’s Crossing the Chasm.

to establish it! When you start a new company, the key product/market fit question you need to answer is whether you have discovered a nonobvious market opportunity where you have a unique advantage or approach, and one that competing players won’t see until you’ve had a chance to build a healthy lead.

And by connecting buyers and sellers instead of holding inventory or managing logistics (and thus dealing in bits rather than atoms), online marketplaces avoid many of the growth limits of human or infrastructure scalability.