Years ago Jeff Bezos and Amazon.com figured out a virtuous cycle that would change the way they ran their company and give them focus for the future. What’s your flywheel?
Talking Points:
- Jeff Bezos changed the way Amazon ran to take the company to the next level. He used a flywheel. A “flywheel” is a self-reinforcing loop that gets your team to the next level. Amazon started by adopting lower prices for commonly-bought items. This lead to more customers.
- As more customers flooded into Amazon, they were able to host more sellers. This allowed them to make even more money by taking a percentage of the income from each sale.
- As Amazon grew, it became more and more efficient in everything from their website to their distribution.
- Each of those four things allowed Amazon to create a virtuous cycle. If anything in that cycle grows, it will flow into the other areas and grow them as well.
Discussion:
- Initial reactions to this topic? What jumped out at you?
- What are some things you have purchased on Amazon?
- Do you think Amazon is a good example of success? Why or why not?
- What things would be on your flywheel? Why?
- Is there a step you need to take based on today’s topic?
