- So the first major advantage that established companies have is the ability to leverage their existing scale. Let's take the example of Rocket Mortgage. Quicken Loans is one of the country's leading mortgage brokers and they wanted to get into the online world. Thanks to their existing scale and their expertise in the marketplace, they're able to turn Rocket Mortgage from launch to one of the country's leading mortgage originators in less than a year. The second major advantage that established companies have when blitzscaling is iteration. You're going to make mistakes when you blitzscale and having the ability to recover from those mistakes and iterate on your product and service can help you become a successful blitzscaler.
Let's take the example of Microsoft and Microsoft Windows. The first version of Windows, to be frank, was not particularly good. They made a lot of mistakes. They fixed a bunch of them, came out with the second version, but they still had problems. They fixed those mistakes, came out with the third version, and then a fourth, and then a fifth. And by the time they had done that, they had built a product that was good enough to dominate the marketplace. The third major advantage that established companies have is longevity. There are some kinds of hard problems that require a long period of time to solve and only an established company can have the longevity, the willingness to invest year after year to solve those problems.
A great example here is Google and self-driving cars. Their Waymo subsidiary has been going for over a decade. No startup could have done that. But thanks to Google's financial power, they were able to ultimately create a potentially world-changing technology. The fourth major advantage that established companies have is mergers and acquisitions. When you're an established company, you have either the stock or the cash to buy blitzscalers and use them to enhance your own blitzscaling effort. There are two key hacks that an established company can use to help them blitzscale.
The first is to partner with a startup. You can leverage their new ideas and their entrepreneurial energy to help accelerate your progress along that blitzscaling race. If you're going to do it on your own, the second hack comes into play, that's to set up your blitzscaling initiative as a company within a company. Blitzscaling is not a part-time endeavor. You need to dedicate an executive to that effort who's going to focus on it 110%.