Commoditized

Commoditization refers to a product or service becoming a commodity, meaning it is indistinguishable

from other products or services in its market. Commoditization can make it difficult for companies to
differentiate their products or services from those of their competitors, and this can lead to lower prices
and margins. Commoditization often leads to price wars. Here are some examples of commoditization in
different industries:

Oil Industry: When the average consumer fills up their car with gasoline, they do not think about the
brand of fuel they are using.

Air Travel: There was a time when people used to get excited about air travel, but now it has become so
common that people take it for granted.

Commodity just can be service if its one travel company

Food Industry: With the advent of supermarkets and big box stores, food has become commoditized.
Whether you are buying a gallon of milk or a can of soup, the product is pretty much the same no matter
where you buy it.

Clothing or Apparel Industry: With the rise of fast fashion, clothing has become commoditized. Brands
like H&M and Zara can mass-produce clothing quickly and cheaply, making it difficult for other brands to
compete on price.

Technology Industry: With the proliferation of smartphones, tablets, and laptops, many types of
technology have become commoditized. For example, there is not a lot of difference between an iPhone
and an Android phone, or between a Dell and an HP laptop.

Hotel and Restaurant Industry: With the rise of online booking, hotels and restaurants have become
commoditized. Consumers can easily compare prices and amenities on these sites, making it difficult for
individual businesses to stand out.

Retail Industry: Retail is becoming increasingly commoditized as more and more stores open up with
similar products at similar prices. This has made it difficult for smaller retailers to compete on price and
quality.

Threemain approaches

One product (coke)

Multuple products (vanilla cherry zero diet)

Customization Segments of one (cars, furniture, fashion) cost,profit, time/delivery,quality

engagement,satisfaction>

Less what is that??

Few if any companies are extensive enough to offer a customer experience using only the comp own
resources
Nearly imposible to offer economies of scale expertise and efficiency

Vertical integration what is this

7 types

1. mass individualization
imagine a production processs in the shape of value chain with the beginning connected to the
producer or)( firm) and the end to the customer
“ a way to get customers to design their own personalized product or service within relatively
strict boundaries .. within the range of optios provided by manufacturer (IKEA e.x.)
MASS Customization – goes beyond mass ind – product is further tailored to the cust it is
extremely unique –
HOW cust provides add unique infor , tailored to cust specific needs
Production process must be very flexible satisfy thoseneeds
4 APPROACHES

EXAMPLE _ Subway own sandwich ( know specific taste, special just for u dressing just for you

2. Co creation
3. User generated content
4. Crowd sourcing funding
5. User innovation
6. Lead users
7. Open source software