commoditisation
Turning goods interchangeable
Commoditisation is the process by which goods or services become interchangeable with competitors' offerings, distinguished mainly by price rather than unique qualities.
When something undergoes commoditisation, brand loyalty and differentiation erode: The commoditisation of smartphones has squeezed profit margins.
The term often carries negative connotations in business contexts, suggesting loss of competitive advantage.
Also spelled commoditization.
Establishing uniform practices
- devaluationLowering of currency worth
- pricingEstablishing monetary amounts charged
- market saturationMaximum product penetration reached
- fungibilityQuality of being substitutable
interchangeability · competition · differentiation · cost reduction · undercutting · race to bottom · generic · mass production
Making things the same
- commercialisationConverting to market goods
- mass-marketFor widespread commercial sale
- mainstreamDominant cultural current
- dilutionReduction in concentration
corporate · branding · exploitation · trivialisation · packaging · superficiality · consumerism · appropriation
Reducing job complexity
- outsourcingThird-party task delegation
- automationSelf-operating system design
- gig economyWork based on temporary contracts
- freelanceSelf-employed project work
contract work · offshoring · human capital · talent pool · replaceable · productivity · downsizing · temps
Internet-delivered digital infrastructure
- SaaSRemotely hosted software access
- infrastructureBasic physical systems
- APIsSoftware communication protocols
- open sourcePublicly accessible code
platform · bandwidth · storage · virtualisation · containerisation · microservices · pay-per-use · subscription
Act of removing
- raw materialsUnprocessed production inputs
- miningExtracting earth's resources
- bulkMain mass or size
- futuresContracts for future delivery
spot price · ore · timber · grain · oil · natural gas · trading floors · supply chain
standardisation
Establishing uniform practices
- devaluationLowering of currency worth
- pricingEstablishing monetary amounts charged
- market saturationMaximum product penetration reached
fungibility · interchangeability · competition · differentiation · cost reduction · undercutting · race to bottom · generic · mass production · wholesale
homogenisation
Making things the same
- commercialisationConverting to market goods
- mass-marketFor widespread commercial sale
- mainstreamDominant cultural current
dilution · corporate · branding · exploitation · trivialisation · packaging · superficiality · consumerism · appropriation · monetisation
deskilling
Reducing job complexity
- outsourcingThird-party task delegation
- automationSelf-operating system design
- gig economyWork based on temporary contracts
freelance · contract work · offshoring · human capital · talent pool · replaceable · productivity · downsizing · temps · agency work
cloud computing
Internet-delivered digital infrastructure
- SaaSRemotely hosted software access
- infrastructureBasic physical systems
- APIsSoftware communication protocols
open source · platform · bandwidth · storage · virtualisation · containerisation · microservices · pay-per-use · subscription · standards
extraction
Act of removing
- raw materialsUnprocessed production inputs
- miningExtracting earth's resources
- bulkMain mass or size
futures · spot price · ore · timber · grain · oil · natural gas · trading floors · supply chain · logistics
commoditisationdifferentiation
Recognizing meaningful differences
distinctiveness · uniqueness · specialisation · customisation · personalization
commoditisationvalue creation
Making things more useful
innovation · upselling · enrichment · appreciation · valorisation
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