Blitz scaling is the process of transforming a startup into a scaleup. This happens when a startup has a product with a genuine demand, a well-defined market and the right distribution networks in place. Amazon is an example of a company that went through this process between 1996 and 1999 involving an IPO somewhere in between. It involves the broad corporate strategy and the intricate techniques to breach that level. The usual efficient and cautions model does not work with innovators, inventors or industry disruptors. Often such upscaling takes place without a hundred-percent confidence in the product. The Tesla electric car or the Fitbit fitness tracker are examples of possible breakneck growth in the near future. There exist four major types of scaling up for startups. One is the classic startup growth where a product fits the market at the right stage, so efficiency is prioritized during relative uncertainty. Another is the classic scaleup growth which entails scaling up only once the company has achieved the minimum point of survival within its environment. Fast-scaling is when the entire focus is on increasing the growth rate, even at the cost of efficiency. The fourth is blitz scaling. Here, speed is all that matters. One must understand a few principles related to blitz scaling. One is that it is both a defensive as well as simultaneously an offensive strategy. It is highly dependent on generating positive feedback loops. While blitz scaling does have its potential payoffs, it does come with associated risks.

Source:https://www.strategy-business.com/article/The-Blitzscaling-Basics?gko=d2402

Uploaded Date:23 October 2018