Commoditization: meaning, definitions and examples
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commoditization
[ ˌkɒmədɪtaɪˈzeɪʃn ]
business
The process by which goods or services become indistinguishable from similar products in the market, leading to price competition and a focus on cost reduction.
Synonyms
commoditisation, homogenization, standardization
Examples of usage
- Commoditization of technology has led to fierce competition among electronics manufacturers.
- The commoditization of software has resulted in price wars between different companies.
Translations
Translations of the word "commoditization" in other languages:
🇵🇹 comoditização
🇮🇳 वस्तुकरण
🇩🇪 Kommodifizierung
🇮🇩 komoditisasi
🇺🇦 комодифікація
🇵🇱 utowarowienie
🇯🇵 商品化 (しょうひんか)
🇫🇷 commoditisation
🇪🇸 comercialización
🇹🇷 metalaştırma
🇰🇷 상품화 (상픔화)
🇸🇦 تسليع
🇨🇿 komodifikace
🇸🇰 komoditizácia
🇨🇳 商品化 (shāngpǐnhuà)
🇸🇮 komodifikacija
🇮🇸 vörufræðing
🇰🇿 тауарландыру
🇬🇪 კომოდიტიზაცია
🇦🇿 malləşdirmə
🇲🇽 comercialización
Word origin
The term 'commoditization' originated in the business world to describe the process by which goods or services lose their unique characteristics and become interchangeable with similar products in the market. This phenomenon is often driven by factors such as increased competition, technological advancements, and globalization. In a commoditized market, the focus shifts towards price competition and cost reduction, as consumers perceive little differentiation between products or services. The concept of commoditization has become increasingly relevant in industries such as technology, retail, and finance, where companies strive to differentiate themselves in order to avoid being seen as mere commodities.