De-commoditization
Escape from the Commoditization Zone
Commoditization is the process (in business) by which the economic value of goods or services depreciates /diminishes over a period of time and it becomes indistinguishable in terms of attributes /uniqueness or and end up as simple commodities in the eyes of the market or consumers
De-commoditization is a program / process by which the customer perceived value of a product or service is augmented by implementing various strategies and action plans to distinguish and differentiate the product in the market or consumers
- What can become a commodity?
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- Any product or service
- What are the dangers of commoditization?
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- Declining prices
- Narrow profit margins
- Dropping customer perceived value
- Low ROI and unable to re-invest in business
- The Good news…
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- It is possible to de-commoditize and escape from the commoditization zone through awareness and proper strategies implemented proactively
Escape from Commoditization
SkyValue 2 day Workshop for Mid to Sr. Management
- Key Objectives
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- To understand commoditization and its effects in your business
- Discuss case studies from similar industry and understand various strategies adopted by companies to escape from commoditization zone
- Develop strategies to Escape from the commoditization zone / prevent commoditization of your company’s product / services