The Shoe Event Horizon
If we look at the 10 largest market cap companies in the world listed on my previous post, most of them are prime targets for a sudden collapse as a result of their costumers/users finally deciding that the aggravation costs more than does switching.
Adam Fisher calls this, "The Trust Thermocline." (Non Pay-walled version here)
If you look at Apple, or Google, or Microsoft, or Amazon, or Facebook, (not so much Apple) what is keeping people as customers is not that they love these companies, in many cases, they HATE these companies, it's just that it's not worth it to leave:
I came across this tweet this morning and it perfectly explains a phenomenon that all customers and employees intuitively understand.So: what's a thermocline?
— John Bull (@garius) November 3, 2022
Well large bodies of water are made of layers of differing temperatures. Like a layer cake. The top bit is where all the the waves happen and has a gradually decreasing temperature. Then SUDDENLY there's a point where it gets super-cold.The Trust Thermocline in Products and Services
John Bull's explanation is straightforward: if you gradually provide less quality for more money, you are gradually eroding your customers' trust in you as a provider. At some point your customers will lose faith and bail, and it won't be because of one specific change. It will be due to a breach of faith so bad that leaving or switching to a new provider will be worth the cost.
If this sounds familiar to you, it might be that it sounds rather a lot like the, "Shoe Event Horizon," from the Hitchhikers Guide to the Galaxy.
The US economy, and hence the world economy, is headed for a, "Shoe Event Horizon," event.
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