In this case, taking a risk made all the difference because it allowed them to beat Wimdu to the punch. And in Airbnb’s case, it paid off! By rushing ahead, they were able to beat a German competitor called Wimdu, which was rapidly trying to eclipse their success. But that’s exactly what makes blitzscaling so effective: the tremendous reward that comes with the danger of taking a risk. And rather than following a more traditional model, within just a year of their decision to expand, they had soared to a record breaking nine international offices between 2011-and 2012! The inherent risk of this choice is plain to see and most people wouldn’t advise it. Originally based in the US, Airbnb was thriving when it began to consider expanding to an international market. And they faced a situation exactly like the one depicted in our hypothetical coffee shop example. Airbnb is one of those companies that falls in the same category as Amazon, Apple, and Google in that it skyrocketed to rapid and unprecedented success. Airbnb CEO Brian Chesky said, “I can’t think of any other work that so perfectly captures the specific challenges – and opportunities – that a company faces at every stage of growth.” Adam Grant, the bestselling author of Originals and Give and Take, raves, “This is the best book I’ve ever read on how to grow a company rapidly - and when that’s even worth trying in the first place.To consider how that works in practice, let’s take a look at the business model of Airbnb. The authors provide a step-by-step approach to this new model, which requires abandoning traditional business strategies and rules in favor of innovative operational and management practices. Their promise: “Blitzscaling” – done right – can catapult your $10 million company to a $10 billion company. To join giants like Facebook or Apple, they write, you need to embrace risk. The author’s professional accomplishments testify to their expertise: Reid Hoffman served as COO of PayPal, co-founded LinkedIn and is the host of the popular Masters of Scale podcast Chris Yeh, co-founder and general partner of Wasabi Ventures, has worked with more than 100 high-tech start-ups since 1995.
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