Business Strategy

Flywheel

A self-reinforcing business cycle where each component feeds the next, building momentum over time. Once spinning, the flywheel continues with less effort and accelerates growth.

Biological Context

Flywheels parallel positive feedback loops in biology. Successful predators get stronger, hunt more effectively, and grow stronger still. Mutualistic relationships where both partners benefit increasingly over time follow flywheel dynamics. The key is identifying which elements reinforce each other.

Business Application

Amazon's flywheel: lower prices attract customers, more customers attract sellers, more sellers enable lower prices. Each turn accelerates the next. Building a flywheel requires identifying which business activities compound.

Related Terms

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strategygrowthdynamics