Amazon has become synonymous with business success, often hailed as a master of efficiency, customer obsession, and innovation. At the heart of its growth strategy is a self-reinforcing cycle often referred to as its “flywheel,” a mechanism designed to drive exponential growth through network effects, operational scale, and relentless customer focus. But is Amazon’s “flywheel” truly a flywheel in the sense of long-term value storage and sustained impact?
When examined through the lens of the Strive & Thrive Cycle, which evaluates a company’s ability to both create value (Striving) and generate lasting impact (Thriving), Amazon’s story takes on a more critical dimension. While the company excels in the Strive-phase, its so-called flywheel (which it isn’t) operates more as a short- to mid-term profit-making machine, extracting value without leaving behind meaningful long-term impact. This approach raises fundamental questions about its sustainability and equity.
In this article, we’ll dissect Amazon’s Striving and Thriving scores and explore why its model, despite its dominance, fails to deliver on the promise of ethical prosperity.
Amazon’s Strive Score: 5/5 – A Relentless Engine of Value Creation
Amazon’s Striving capabilities are nothing short of extraordinary. The company’s operational model is designed to maximize efficiency, reduce costs, and deliver value at unprecedented speed. Key drivers include:
Operational Excellence: Amazon’s logistics network sets the gold standard for supply chain efficiency, enabling fast and cost-effective delivery on a global scale.
Customer Obsession: From one-click purchasing to Alexa’s seamless integration, Amazon has redefined convenience and customer satisfaction.
Relentless Innovation: With products like AWS, Amazon constantly pushes boundaries, diversifying revenue streams and staying ahead of competitors.
This relentless focus has made Amazon a dominant force in global commerce. However, this success comes at a cost. Its operational model prioritizes rapid growth and profit extraction, externalizing significant costs to society and the environment.
Amazon’s Thrive Score: 1/5 – The Illusion of a Flywheel
While Amazon excels at Striving, its performance in Thriving—creating long-term positive impact—is deeply lacking. What is often branded as a “flywheel” is, in reality, a self-reinforcing profit cycle. Unlike a true flywheel, which stores energy to smoothen operations and drive long-term impact, Amazon’s cycle:
Fails to Store Value: Instead of building lasting societal or environmental impact, Amazon’s model amplifies extraction, leaving no cushion to smoothen or sustain future operations.
Lacks Long-Term Impact: The so-called flywheel focuses on constant selling, driven by network effects and relentless growth, but offers little in the way of environmental or social contributions.
Greenwashing Efforts: Despite a pledge to reach net-zero carbon emissions by 2040, reports reveal that emissions are rising, and initiatives like “Climate Pledge Friendly” have been criticized as misleading [1 2 3].
Neglects Stakeholders: Employees face challenging work conditions, communities experience strain, and local ecosystems are often ignored in pursuit of efficiency [4].
Amazon’s so-called flywheel is thus not a mechanism of lasting impact but a short-term profit engine, relying on constant motion to maintain its dominance.
The Contradiction of Amazon’s Flywheel
A true flywheel drives long-term prosperity by storing value and redistributing it sustainably, allowing businesses to operate smoothly even under pressure. Amazon’s model, by contrast, is inherently extractive:
Short-Term Gains Over Long-Term Impact: Its system extracts value from society and nature without reinvesting meaningfully in long-term outcomes.
Amplified Fragility: The lack of a robust foundation for sustainability leaves Amazon vulnerable to external disruptions, from environmental crises to regulatory scrutiny.
Unsustainable Growth: Without mechanisms to mitigate adverse effects or build ethical prosperity, Amazon’s model risks eroding trust, reputation, and even profitability over time.
A Divided Legacy: The Strive-Thrive Imbalance
- Strive: 5/5 – Exceptional operational efficiency and value creation.
- Thrive: 1/5 – Minimal investment in long-term impact, sustainability, or equity.
This imbalance illustrates the limitations of a profit-focused model that prioritizes growth over lasting impact. Amazon’s approach delivers extraordinary short-term results but leaves little for the future, operating more as a machine for extraction than a flywheel of shared prosperity.
Conclusion: Redefining the Flywheel
Amazon’s model, while celebrated, reveals the dangers of a narrow focus on Striving at the expense of Thriving. A true flywheel integrates both: operational efficiency to create value and long-term impact to sustain it. The RoundMap Flywheel of Shared Success provides an alternative vision, showing how businesses can harmonize value creation with lasting impact to achieve ethical prosperity.
Amazon’s story serves as a reminder that growth without responsibility is not success—it’s destruction. Businesses must strive not only to grow but to thrive, building systems that leave society and nature better off than they were before. The future belongs to companies that rise for impact, not those that fall into the trap of relentless extraction.
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Author
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Edwin Korver is a polymath celebrated for his mastery of systems thinking and integral philosophy, particularly in intricate business transformations. His company, CROSS-SILO, embodies his unwavering belief in the interdependence of stakeholders and the pivotal role of value creation in fostering growth, complemented by the power of storytelling to convey that value. Edwin pioneered the RoundMap®, an all-encompassing business framework. He envisions a future where business harmonizes profit with compassion, common sense, and EQuitability, a vision he explores further in his forthcoming book, "Leading from the Whole."
View all posts Creator of RoundMap® | CEO, CROSS-SILO.COM