Amazon's simplified big picture strategy is the application of perfect execution to dominate a market. They're really good at it. They optimize the whole process from the website, to the box magically appearing at my door two days later. For books and food and ebooks and "stuff" in general, I find that ability to perfectly execute rather important, and they get lots of my business. They're the kings of detail orientation. Process failure is not an option.
They thought they could execute perfectly on designing and shipping phones. I believe they can. The problem is the market for phones doesn't care about flawless execution. Legendarily the existing network providers suck and the existing phones aren't too great either but people love them anyway and never make their buying decisions based on who's most likely to ship on time or least likely to crash.
They would fail exactly the same way if they tried to sell fast food or American cars or car insurance, where nobody cares about quality and only want low price. They would be a huge success in something like medical supply logistics (don't they already sell stuff like that?) or aerospace (spaceX better look out)
The challenge for them is trying to sell perfect logistics, perfect performance, perfect execution in general to markets where people currently really don't care. I think they are running out of consumer markets that they don't already dominate where people care about flawless execution.
Its interesting that all the stuff I use with my phone comes from Amazon. Case, bluetooth ear piece, BT headphones, charger, cable... I'd even buy a phone from them, although I'd buy the phone I want, not a fire.
Also note they're good at shipping a variety but not good at making anything. I never want Amazon's XYZ, ever. I want an XYZ, and Amazon is the best in the business at getting a XYZ delivered to me.
They thought they could execute perfectly on designing and shipping phones. I believe they can. The problem is the market for phones doesn't care about flawless execution. Legendarily the existing network providers suck and the existing phones aren't too great either but people love them anyway and never make their buying decisions based on who's most likely to ship on time or least likely to crash.
They would fail exactly the same way if they tried to sell fast food or American cars or car insurance, where nobody cares about quality and only want low price. They would be a huge success in something like medical supply logistics (don't they already sell stuff like that?) or aerospace (spaceX better look out)
The challenge for them is trying to sell perfect logistics, perfect performance, perfect execution in general to markets where people currently really don't care. I think they are running out of consumer markets that they don't already dominate where people care about flawless execution.
Its interesting that all the stuff I use with my phone comes from Amazon. Case, bluetooth ear piece, BT headphones, charger, cable... I'd even buy a phone from them, although I'd buy the phone I want, not a fire.
Also note they're good at shipping a variety but not good at making anything. I never want Amazon's XYZ, ever. I want an XYZ, and Amazon is the best in the business at getting a XYZ delivered to me.