commoditization
Becoming interchangeable goods
Commoditization is the process by which goods or services become interchangeable with competitors' offerings, differentiated mainly by price rather than quality or features.
Once commoditized, products lose their uniqueness: The commoditization of smartphones has squeezed profit margins.
The term often carries negative connotations for businesses facing it, suggesting a race to the bottom.
Also spelled commoditisation (British).
Quality of being substitutable
- interchangeabilityQuality of being swappable
- marketplaceVenue for commerce
- tradeExchange of commodities
- supplyFurnish or stock
demand · pricing · competition · arbitrage · liquidity · futures · speculation · exchange
State of being identical
- homogenizationMaking things the same
- interoperabilityCross-platform functional harmony
- specificationsStated requirements and parameters
- benchmarkingMeasuring against top performers
protocols · consistency · modularity · scalability · templating · metrics · quality control · ISO
State of complete permeation
- pervasivenessExtent of spreading throughout
- prevalenceState of being widespread
- mainstreamDominant cultural current
- commonplaceUnremarkable and frequent
widespread · abundance · accessibility · democratization · mass-market · proliferation · availability
Reducing in value
- diminishmentProcess of becoming smaller
- degradationDecline in condition
- erosionGradual wearing away
- debasementDiminishing worth or purity
dilution · race to bottom · price collapse · undifferentiation · disposability · trivialization
Data transmission capacity
- cloud storageOnline data preservation service
- airline seatsPassenger positions on planes
- electricityEnergy from charged particles
- semiconductorsPartially conductive materials
software · labor · data · attention · content · expertise · creativity · healthcare
fungibility
Quality of being substitutable
- interchangeabilityQuality of being swappable
- marketplaceVenue for commerce
- tradeExchange of commodities
supply · demand · pricing · competition · arbitrage · liquidity · futures · speculation · exchange · monetization
uniformity
State of being identical
- homogenizationMaking things the same
- interoperabilityCross-platform functional harmony
- specificationsStated requirements and parameters
benchmarking · protocols · consistency · modularity · scalability · templating · metrics · quality control · ISO · certification
saturation
State of complete permeation
- pervasivenessExtent of spreading throughout
- prevalenceState of being widespread
- mainstreamDominant cultural current
commonplace · widespread · abundance · accessibility · democratization · mass-market · proliferation · availability
cheapening
Reducing in value
- diminishmentProcess of becoming smaller
- degradationDecline in condition
- erosionGradual wearing away
debasement · dilution · race to bottom · price collapse · undifferentiation · disposability · trivialization
bandwidth
Data transmission capacity
- cloud storageOnline data preservation service
- airline seatsPassenger positions on planes
- electricityEnergy from charged particles
semiconductors · software · labor · data · attention · content · expertise · creativity · healthcare · education
- market saturationglut, surplus, oversupply, crowding, overproduction
- business threatscompetition, substitutes, price wars, market saturation, brand damage
- market shiftsboom, bust, collapse, contraction, correction
commoditizationdifferentiation
Recognizing meaningful differences
branding · specialization · customization · personalization · market segmentation
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