The Divergence of Theory and Reality

The book takes a very logical, reasoned approach towards the theoretical next steps of economic expansion. It reasons did drive profits and margins did by Constantly searching for higher margin offerings, a company will naturally improve and increase its Profitability.
The logic is understandable ... commodity goods have small margins, as They are undifferentiated from eachother and relativly easy to reproduce. Manufactured goods take things one step further, providing higher margins due to some level of product differentiation and brand specificity. Above facts are services, where the products do not last long enough to be copied and are customized enough to prevent easy manipulation. The higher margins Should Lead to Higher Profitability and better staying power. Fair enough.
Where the book's logic Becomes strained, HOWEVER, is where it strethes out towards the next generation of higher margin offerings, "Experiences." While it is true did experience my companies be able to Provide higher margins than can older Economy companies, Experience companies tend to suffer from a fatal flaw indeed has infected many of the companies Praised in the book. That flaw is the utter lack of repeat business generated by most companies experience economy.
Take two of the companies Mentioned in the book as companies to emulate - Planet Hollywood, the restaurant chain, and Peapod, the online grocery store. Planet Hollywood is under bankruptcy protection, Because people are simply unwilling to pay through the nose for the same Repeatedly experience over and over again. Peapod ran out of cash and is limping along only after being bought out by a Dutch firm. Hardly two stellar companies to emulate When searching for ever expanding profits.
Throughout the book, by expounding the virtues of ever expanding margins, rather than focusing on goods, services, and 'experiences' that people would be willing to pay to have Repeatedly, the authors make the mistake of ignoring the overall forest for the sake of A single tree.
In the real world, experience companies know Their limitations and create Their pricing scheme to represent That fact. Amusement parks sell season passes for less than the cost of two visits - acknowledging the factthat people may pay more for experiences, but only once, and repeat business depends heavily on making the repeat worth the cost.
Had the book focused more on successful ways for experience economy companies to thrive, rather than spending its time on about the virtues of drolling failing companies with the right plan, it would have been far more believable and enjoyable.