The virtuous cycle is a positive loop or a set of positive loops that trigger a non-linear growth. Indeed, in the context of digital platforms, virtuous cycles – also defined as flywheel models – help companies capture more market shares by accelerating growth. The classic example is Amazon‘s lower prices driving more consumers, driving more sellers, thus improving variety and convenience, thus accelerating growth.

Amazon Flywheel

Epic Games Flywheel

Etsy Flywheel

Uber Flywheel

DoorDash Flywheel

Read Next: Amazon Business Model, Epic Games Business Model, Etsy Business Model, Uber Business Model, Uber Eats Business Model, DoorDash Business Model.

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