Earlier quoted context omitted.
I'm surprised to see this framed so negative. What they do is essentially being the lean huge startup . They launch a product, gather initial feedback, and if it turns out promising (like AWS) they double-down. If it doesn't work, they kill it. I think it's actually nice to see such a rapid-iteration product development done by a company with that many resources and talent.
The problem is that they are using the Amazon brand to position it. This helps in gaining initial traction, but in the end damages the brand in two ways: - people do not know what to associate amazon with (it's just a bookstore, right?) - when they kill off too many project, or too many projects fail, their brand value hurts. There are other businesses that have many, many product lines, but the most succesful ones (…
In my experience people couldn't care less about "brand identity" in general.
Nobody (outside our tech filter-bubble) cares what Amazon does or doesn't do beyond their shopping and book business.