vertical integration


Apple understands it. Amazon understands it.

But nearly every other gadget manufacturer is missing the point: It’s not about the specs any more. It’s about the ability of devices to deliver a seamless, integrated, easy-to-use experience that combines plenty of desirable content and useful services, with a minimum of hassle.

Call it “vertical integration” or whatever you want, it’s the strategy employed by successful companies like Apple, Amazon, Nike and Microsoft to make some of their products nearly unbeatable in the market.

Apple’s iPad is not the world’s most successful tablet because of its hardware engineering (though that helps). It’s successful because it’s locked into the iTunes marketplace, giving it a vast, built-in library of music, movies, TV shows, audiobooks and apps. That connection is often restrictive, but it also offers many people more than enough content to choose from, and it’s easy to use.

Read the rest of the story: Dylan’s Desk: Welcome to the age of integration | VentureBeat.