Summary of “Divine Discontent: Disruption’s Antidote – Stratechery by Ben Thompson”

Amazon’s highly modular structure, varied businesses, and iterative approach to those businesses enable it to create services with itself as its first, best, customer, and then extend those services to developers and retailers, even as the exact same factors lead to product disasters like the Fire Phone.
The second element of the failure framework, the observation that technologies can progress faster than market demandmeans that in their efforts to provide better products than their competitors and earn higher prices and margins, suppliers often “Overshoot” their market: They give customers more than they need or ultimately are willing to pay for.
Apple seems to have mostly saturated the high end, slowly adding switchers even as existing iPhone users hold on to their phones longer; what is not happening is what disruption predicts: Apple isn’t losing customers to low-cost competitors for having “Overshot” and overpriced its phones.
We now offer customers gift certificates, 1-Click shopping, and vastly more reviews, content, browsing options, and recommendation features.
Word of mouth remains the most powerful customer acquisition tool we have, and we are grateful for the trust our customers have placed in us.
One thing I love about customers is that they are divinely discontent.
These examples are from retail, but I sense that the same customer empowerment phenomenon is happening broadly across everything we do at Amazon and most other industries as well.
Owning the customer relationship by means of delivering a superior experience is how these companies became dominant, and, when they fall, it will be because consumers deserted them, either because the companies lost control of the user experience, or because a paradigm shift made new experiences matter more.

The orginal article.