Commoditization is often seen as the kiss of death for an industry. Boding ominously for profit margins, it brings slowing growth, falling prices, and increasing competition. In recent years, the process of commoditization has accelerated. Company life cycles have halved in the past 20 years—markets mature faster and incumbents are more and more at risk of commoditization.
But does commoditization have to be bad for every company? While many fail to navigate this commoditization process effectively, others are able exploit it and flourish.
These are the best strategies to address increasing commoditization: