Sunday, March 1, 2020

Trending: Feb 22- Feb 29 : Amazon is opening a supermarket with no cashiers. Is Whole Foods next?

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TradeBriefs Editorial

From the Editor's Desk

The Blitzscaling Basics

The classic approach to business strategy involves gathering information and making decisions when you can be reasonably confident of the results. Take risks, conventional wisdom says, but take calculated ones that you can both measure and afford. Implicitly, this technique prioritizes correctness and efficiency over speed.

Unfortunately, this cautious and measured approach falls apart when new technologies enable a new market or scramble an existing one. Efficiency and certainty, while innately appealing, and very important in the context of a stable, established market, offer little guidance to the disruptors, inventors, and innovators of the world. When a market is up for grabs, the risk isn't inefficiency - the risk is playing it too safe. If you win, efficiency isn't that important; if you lose, efficiency is completely irrelevant. Over the years, many have criticized Amazon for its risky strategy of consuming capital without delivering consistent profits, but Amazon is probably glad that its "inefficiency" helped it win several key markets - online retail, e-books, and cloud computing, to name just a few.

Continued here


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