Listen "E6 - A Less Talked About Flywheel of Amazon"
Episode Synopsis
How does Amazon sustain high growth rates despite being such a massive company? We talked about one aspect of Amazon's growth strategy in this episode- diversifying revenue through 1) adding more services horizontally, 2) adding more services via converting its own cost centre into a revenue generating business that is used to either partially or fully subsidise its own operations and contribute directly to the bottom line (operating profits).
00:12 Amazon's growth strategy
02:08 AWS as an example of how Amazon converted internal infrastructure cost to a revenue generating business
05:00 Applying this top line diversification strategy of externalizing and monetizing internal tools to other business lines
06:36 First order effect: Subsidize its own cost centre
07:11 Amazon Ads as an example of the above
14:30 Second order effect: Increase operating profits by having new business lines contribute majorly to (top and) bottom line
00:12 Amazon's growth strategy
02:08 AWS as an example of how Amazon converted internal infrastructure cost to a revenue generating business
05:00 Applying this top line diversification strategy of externalizing and monetizing internal tools to other business lines
06:36 First order effect: Subsidize its own cost centre
07:11 Amazon Ads as an example of the above
14:30 Second order effect: Increase operating profits by having new business lines contribute majorly to (top and) bottom line
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