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Commoditization

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Commoditization
Movement toward perfect competition; the process by which a good or service thought to be unique or superior becomes like other, similar goods and services in the eyes of the market. Commoditization is the movement toward undifferentiated competition between two or more companies offering the same good or service. This leads to lower prices.
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Based on an extensive series of interviews with industry leaders, combined with primary research and a review of a wide range of industry and economic data, Booz & Company has identified four opposing forces with the potential to redefine the boundaries and practices of the industry: Commoditization versus innovation, lean operations versus strategic investment, consolidation versus fragmentation and re-regulation versus deregulation.
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