Saturday, March 8, 2008

Evolutionary Commoditization

I was reading an article by the CEO of a business consulting company named The Imagine Companies. There was a paragraph I thought was pretty powerful and worthy of sharing:

Commoditization is the evolutionary process that reduces all products and services to their lowest common denominator. The Commoditization Trap is the situation businesses find themselves in when their focus is mainly on the product or service they offer instead of a quantifiable difference between their product and their competitor’s.

Let's use music radio as an example:

Focus = the music

Quantifiable Difference = what's in between the music

Competitor's = every other way to hear one's favorite songs

Click here to read the entire article.