Must-Read: Ben Thompson: The Funnel Framework

Must-Read: If you are going to read only one tech newsletter… I believe this is the one you should read:

Ben Thompson: The Funnel Framework: “The post-Internet Microsoft was the proverbial emperor with no clothes…

…That reality would only manifest itself… as soon as something better came along…. In the case of Apple… winning via the user experience…. iOS owns the best customers, i.e. the customers who are most willing to pay…. The companies who… own the funnel… are the ones who gain… in the long run, outsized profits…. Google[‘s]… search engine was, and is, superior…. And, now that they own access to the most consumers looking to buy something online–now that they own the funnel–they have outsized influence and outsized profits. Facebook… built a superior product that connected an extraordinary number of people, all generating content that made the product even more attractive and able to capture even more attention. And, now… that they own the funnel… have outsized influence and outsized profits.

All three companies succeed with very different product focuses, but all share the ability to capture a specific type of customer and funnel them to someone who is willing to pay…. If you look around you can see the funnel framework everywhere: Taxis… Uber…. Hotels… Airbnb…. Messaging apps… LINE and WeChat…. Newspapers… BuzzFeed…. Broadcast channels… Netflix and HBO…. Failing business models… most… were based on something other than providing a superior product…