As Bezos wrote in his 2015 annual letter to shareholders, “Superficially, the two could hardly be more different. A decade later, Amazon Web Services (while still contributing less than 10 percent of Amazon’s overall net sales) generated a substantial portion of Amazon’s operating income.21Įven though Amazon Web Services first appears to be a very different activity than the consumer-retail business, it has substantial similarities.Ī decade later, Amazon Web Services (while still contributing less than 10 percent of Amazon’s overall net sales) generated a substantial portion of Amazon’s operating income.21Įven though Amazon Web Services first appears to be a very different activity than the consumer-retail business, it has substantial similarities. The bullet hit its target and Amazon had enough calibration to fire a cannonball. In 2006, the company fired a bullet on offering these very same services to outside companies.
Amazon Web Services began as an internal system to provide backend technology support for Amazon’s own e-commerce efforts. Amazon showed this precise pattern with its Amazon Web Services, which enables organizations big and small to efficiently buy computing power, store data, host websites, and avail themselves of other technology services. Most seeming “second flywheels” come about organically, as bullet-to-cannonball extensions of a primary flywheel. Ģ3Jim Collins, How the Mighty Fall: And Why Some Companies Never Give In (Boulder, CO: Jim Collins, 2009), 29–36.Ģ4Alan Wurtzel, Good to Great to Gone: The 60 Year Rise and Fall of Circuit City (New York, NY: Diversion Books, Kindle Edition, 2012), Chapter 8 Circuit City Stores, Inc., Fiscal 2002 Annual Report (Richmond, VA: Circuit City Stores, Inc., 2002) Michael Janofsky, “Circuit City Takes a Spin at Used Car Marketing,” The New York Times, October 25, 1993, Mike McKesson, “Circuit City at Wheel of New Deal for Used-Car Shoppers: Megastores,” Los Angeles Times, January 28, 1996, –01-28/news/mn-29582_1_circuit-city.Ģ5Alan Wurtzel, Good to Great to Gone: The 60 Year Rise and Fall of Circuit City (New York, NY: Diversion Books, Kindle Edition, 2012), Chapter 8 Circuit City Stores, Inc., Fiscal 2002 Annual Report (Richmond, VA: Circuit City Stores, Inc., 2002).Ģ6Alan Wurtzel, Good to Great to Gone: The 60 Year Rise and Fall of Circuit City (New York, NY: Diversion Books, Kindle Edition, 2012), Loc 3542 of 5094.Ģ7Alan Wurtzel, Good to Great to Gone: The 60 Year Rise and Fall of Circuit City (New York, NY: Diversion Books, Kindle Edition, 2012), Chapter 8 and Chapter 10 Jesse Romero, “The Rise and Fall of Circuit City,” Federal Reserve Bank of Richmond, 2013 Jim Collins, How the Mighty Fall: And Why Some Companies Never Give In (Boulder, CO: Jim Collins, 2009), 29–36. Hansen, Great by Choice: Uncertainty, Chaos and Luck-Why Some Thrive Despite Them All (New York, NY: HarperBusiness, 2011), 91–95.Ģ1Amazon, Fiscal 2015 Annual Letter to Shareholders (Seattle, WA: Amazon, 2015) Amazon, Fiscal 2016 Annual Report (Seattle, WA: Amazon, 2016) Amazon, Fiscal 2017 Annual Report (Seattle, WA: Amazon, 2017) Alex Hern, “ Amazon Web Services: the secret to the online retailer’s future success,” The Guardian, February 2, 2017, amazon-web-services-the-secret-to-the-online-retailers-future-success Robert Hof, “Ten Years Later, Amazon Web Services Defies Skeptics,” Forbes, March 22, 2016, amazon-web-services-defies-skeptics/#244356466c44.Ģ2Amazon, Fiscal 2017 Annual Report (Seattle, WA: Amazon, 2017) “Global Retail Industry Worth USD 28 Trillion by 2019 - Analysis, Technologies & Forecasts Report 2016–2019 - Research and Markets,” Business Wire, June 30, 2016.
Turning the Flywheel: A Monograph to Accompany Good to Great
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