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Commoditization

   Also found in: Wikipedia 0.01 sec.
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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Because commoditization leaves little room for differentiation in network services, the industry is likely to see a clear move to acquire scale even as a new wave of innovation emerges, with industry players seeking out ways to set themselves apart from competition," commented Mohamad Mourad, Principal at Booz & Company.
Potential for market expansion depends greatly on a company's ability to avoid commoditization of its products and remain price-competitive with offshore manufacturers.
Commoditization of BI technology is having a profound impact on the competitive landscape.
 
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