Dictionary Entry


In his book "Blitzscaling" Reid Hoffman, one of the most influential people in the startup world describes the strategy of growth before efficiency. The concept is based on the theory that you can close a market for competitors when you grow fast enough to acquire a certain market share that makes it too expensive for other companies to acquire customers anymore. As soon as you reached that market share you start an expensive transformation of your company in regards to process quality and efficiency, but you can afford it as the unbeaten market leader.

When you have a competitor in your market that invests heavily into market acquisition and ignores the negative effects on his organization of this hypergrowth, you're forced to do the same in order to not be left behind with no or a minimum market share.

Company Building Dictionary

Other Popular Articles