Flywheels and free deliveries

Amazon has grown to a point where almost everything in our lives can in some way be linked back to this business. It is a company that is so far-reaching, that we don't even really know what it is anymore. How can we define Amazon? Amazon isn't just a supplier of everything our heart desires at the click of a button. It is a streaming service and a publisher of books, and just about everything else you can imagine.

82 percent of households in the U.S. are on Amazon, meaning it is one of the most appealing platforms for advertisers trying to reach new target markets. The Amazon Media Group has grown to a $15 billion business, making it the third largest advertiser behind Facebook and Google. And as streaming wars continue with Netflix now facing competition from the likes of everyone from Disney and Apple to yes, of course, Amazon, it is safe to say that in terms of distribution and flywheel, Amazon is heading to dominating the streaming market as well.

What is a flywheel? In business terms, a flywheel is a business that, as it rotates (operates), it increases output or revenue without increasing input or cost. Amazon Prime as an example of a flywheel attracts shoppers wanting a range of products on demand. It is the ultimate in disruption platforms that, with cheap capital, can use its flywheel effect to spin into completely different industries. How many of us have been tempted by the benefits that come with Amazon Prime? We go online to buy a book, for example, are attracted by the idea of cheap or free and fast delivery, find ourselves watching its streaming service, and then when we need anything in the future go to Amazon because our accounts are already set up, and it's easier than looking elsewhere? At this rate, it seems there is no industry Amazon won't easily branch into.

Where does Amazon's control over everything in our lives stop? This companies continues to grow, appears above the law, avoids paying taxes, and is alleged to treat its staff terribly. Yet here we all still are using its products and services, creating a world where a business isn't a business if it doesn't sell on Amazon. Which is to say, is Amazon really unstoppable, or is it our reliance on convenience that makes us passive to its continued dominance?