Stack fallacy has caused many companies to attempt to capture new markets and fail spectacularly. When you see a database company thinking apps are easy, or a VM company thinking big data is easy — they are suffering from stack fallacy.
Stack fallacy is the mistaken belief that it is trivial to build the layer above yours.
Apple continues to successfully integrate vertically down — building chips, programming languages, etc., but again has found it very hard to go up the stack and build those simple apps — things like photo sharing apps and maps.
The same could be said for Samsung and Sony.
A thought-provoking argument but I’m not entirely convinced that it’s the entire argument. Amazon is in so many things and dominates so many things. Is it because they’re more horizontal than vertical?