For many “born-on-the-Internet” companies, slow growth isn’t an option. These are companies that started on the Web with a global marketplace in mind, and many are finding that it’s either scale or be irrelevant. They work hard to achieve market leadership, to realize economies of scale and economies of scope, and to be recognized as the brand leader. A few examples of these ventures include Dropbox, Evernote, Fab, Etsy,Groupon GRPN +4.15%, LinkedIn LNKD +0.84%, Pinterest, Stripe and Square.
These types of businesses often start fast and never let up, which stresses a startup financially and can leave its owners emotionally drained. To maintain advantage, they need to have the proper building blocks in place in order to go full speed ahead with the best chances for success.
Know your industry
The foundation of any enterprise should be built on knowledge of the industry and market conditions surrounding the venture. However, the competitive environment is a bit different for most fast-growth Internet startups today. We are now living in a world where customer preferences are volatile and the identity of customers and the technologies serving them are changing.
Read the full article at Forbes.
Rory O’Shea is a Visiting Assistant Professor in Innovation and Entrepreneurship at the MIT Sloan School of Management.