The Flywheel · Moat & Competition
The Loop That Ate Retail: How Amazon's Flywheel Turns Low Prices Into an Unstoppable Machine
Jeff Bezos sketched it on a napkin: lower prices bring more customers, more customers bring more sellers, more sellers lower costs, and lower costs fund lower prices. No beginning, no end - just a wheel that spins faster the bigger it gets. Here's why a self-reinforcing loop is the hardest moat to fight.
8 min