What is the Doom Loop?

The "Doom Loop" is a concept contrasted against the "Flywheel" in business strategy. It describes a cycle where disappointing results trigger reactions without understanding the root cause, leading to panicky decisions and further disasters. This loop tends to begin with disappointing results which might be caused by uncontrollable events or mistakes. Instead of analyzing and understanding these results to mitigate their effects, companies often react hastily. This panic can lead to misguided actions like aggressive expansions or changes, which if unsuccessful, lead to more panic and poor decision-making, further entrenching the company in the Doom Loop 1 2 3.