Flywheel
/ˈflaɪwiːl/
Definition
A self-reinforcing growth loop where one driver feeds the next, spinning faster and faster over time. Popularized by Jeff Bezos's napkin sketch of Amazon's growth strategy.
Examples
- • Coupang's flywheel: fast delivery attracts customers, and more customers justify more logistics investment.
- • We need to build a flywheel so we can grow without constant ad spend.
Origin
Introduced by Jim Collins in his 2001 book "Good to Great," then popularized when Jeff Bezos sketched Amazon's growth loop as a wheel on a napkin.
Description
A flywheel is originally a mechanical part that stores rotational energy. In business, the image is borrowed to describe a virtuous cycle where several growth drivers reinforce one another, spinning faster once it gets going.
The most famous example is Amazon: lower prices → more customer traffic → more sellers join → economies of scale cut costs → prices drop further, and the loop keeps accelerating.
Unlike a one-off marketing campaign, a flywheel is a growth system that gets stronger over time, which is why it's a frequently cited strategic frame in startup and investing circles.