Master the secrets of the trillion-dollar business
with Scott Galloway
Available on demand
1-week sprintUPGRADE TO MEMBERSHIP
Welcome to the Business Strategy Sprint
What does it take to get a business within striking distance of $1 trillion? In this sprint, NYU Stern Professor Scott Galloway teaches the strategies that Amazon, Apple, Google, and Meta have used to dominate their categories and change the face of business.
Previously, top firms led their categories by attaining high growth or strong margins. However, today’s most valuable companies are able to do something unprecedented — achieve both growth and margins. To reach this elusive combination, these firms deploy a set of strategies we call the T-Algorithm. One such strategy for unlocking value is combining products and services to create recurring revenue bundles, or rundles.
Most firms fall into one of two camps — they are high growth or high margin. But today’s most valuable firms, including Apple, Microsoft, Google, Meta, and Amazon, are different — they have explosive growth and strong margins. To unlock both, these firms deploy a set of strategies we call the T-Algorithm, the strategies that define market and category winners.
Lesson 1 case study: Netflix
Netflix was one of the best-performing stocks of the last 10 years, delivering a 34x return. But lately, it's become clear that the firm needs to shift from a growth to a margin story. Work still remains, particularly after slow user growth in 2020, but the firm offers key lessons into how a firm can begin the shift from growth to margins.
Lesson 2: Rundles
Today’s top firms including Microsoft and Amazon have generated unprecedented value through recurring revenue, particularly since the market values firms with recurring revenue at a multiple of revenues rather than EBITDA. But justifying recurring revenue (or monogamy) from consumers is difficult. That’s where the rundle (recurring revenue bundle) comes in.
Lesson 2 case study: Restoration Hardware
Retail stocks are struggling, but one retailer stands out — Restoration Hardware, whose stock has more than doubled in the last five years. Key to the firm’s turnaround has been its risky decision to shift to a rundle, or recurring revenue bundle. This strategy has reduced RH’s reliance on discounts and generated incredible value for the firm.
Appealing to human instinct and serving as a career accelerant are core components of the T-Algorithm. They don’t require proprietary technology or excessive capital. Both strategies can be implemented by firms of any size, across any industry. Yet many firms still fall short here and fail to implement these strategies. When executed well, both strategies create incredible value, as evidenced by today’s most valuable firms.
Building Benjamin Button products is arguably one of the toughest T-Algorithm strategies to implement, but companies can unlock tremendous value by creating products that increase in value over time. Additionally, any firm can deploy visionary storytelling to clearly articulate its mission to the market and attract cheap capital.
Vertical integration and serving as a career accelerant comprise the final two strategies of the T-Algorithm. Taking incremental steps toward controlling more of the value chain, and attracting top talent have unlocked unprecedented value for firms like Apple, Google, and Meta.
Sample 1-week Sprint Calendar
Section courses are built around the tight schedules of busy, full-time professionals.
Thurs - Pre Sprint
Meet your TA and cohort
Fri - Pre Sprint
Watch a welcome video from your professor
Mon - Sprint week
Watch your day 1 lesson content
Tues - Sprint week
Watch your day 2 lesson content
Weds - Sprint week
Thurs - Sprint week
Attend a project workshop hosted by your TA
Fri - Sprint week
Mon - Post Sprint
Submit your project
Professor and TA interaction. Our world-class professors and teaching staff are here to help you make the most of the experience.
Lifetime network. Connect with professionals from 60+ countries and across industries to gain fresh perspective from like-minded leaders.
High-impact project. Apply the frameworks and strategies from the sprint to a real problem at work.