How a simple online bookstore became a $2 Tn empire through the power of the Flywheel effect. The Empire That Started with Books. What began as a modest online bookstore in 1995 has transformed into one of the world’s most valuable companies, with a market capitalisation of approximately $2 Tn as of mid-2025. Amazon’s journey from selling books to dominating multiple industries is a masterclass in building sustainable competitive advantages through what Jeff Bezos termed the "Flywheel effect." Today, Amazon commands 38% of the US e-commerce market, operates the world’s largest cloud computing platform, and runs a digital advertising business that rivals Google and Meta. The secret to Amazon’s dominance isn’t just diversification; it’s the interconnected flywheels that create unstoppable momentum. Source: Generative AI The New Reality 2023 The Anatomy of Amazon's Original Flywheel Phase 1: The Customer Obsession Foundation Amazon’s initial flywheel was simple yet powe...
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