Commoditize
Categories: Trading, Company Management, Regulations
You're in a rush to get downtown. You hurry out the door and jump on the subway. You open your phone, and you reach into your pocket. But your headphones...are not there. You've left them at home. The horror...the horror...
Rather than sit in the office and listen to your co-workers babble on about the latest Netflix series, you stop off at Walgreens to get a new pair of headphones. They're all the same to you. Cheap, plastic earbuds. There are ten different brands, and they're all under $10 per pair.
There was a time 30 years ago when Sony dominated the headphone space. But, in recent decades, headphones have become commoditized...which means that brands have become indistinguishable from one another (unless you’re that guy with the $300 Beats headphones; in that case, Beats has features and qualities that warrant a premium price).
Commoditization is a positive thing for consumers, as it signals a decline in price and typically reliable quality in goods. Consumer goods is an industry where commoditization is common. Companies aim to add new features to consumer products to avoid having customers think that all products are "the same." This is one common reason Apple and Samsung add new features to virtually every iteration of the devices they sell.
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Finance: What Are Commodities?74 Views
Finance allah shmoop What are commodities This is a comm
owed And this is my monnet ease And neither of
them have anything to do with commodities though if you
say them fast enough well you'll never mind A commodity
is something that is common like it's everywhere See the
com o there for the big hand Like gold is
a commodity it's everywhere oil is a commodity it's everywhere
seven hundred fourteen page paperback copy of moby dick is
a commodity and yes we can't resist clueless politicians are
a commodity as well Well a commodity is basically the
same thing no matter where and how you buy it
That copy of moby dick is the same copy whether
you get it at your local bookstore If a physical
book stores even exist anymore or on amazon the serial
killer of those aforementioned book stores So if something is
the same everywhere well what would be the opposite Well
how about a swim lesson from michael phelps You know
you can't buy that on amazon Not yet anyway Or
say you want to be the proud owner of a
three headed dog Well you might be able to find
one somewhere but it's going to cost you a whole
lot of kibble Or what if you were looking to
buy a blouse like one that was worn by j
edgar hoover Well those are pretty uncommon and or unique
commodities Well the basic idea is that most commodities can
be sold by lots of people so their profit margins
are generally low They may sell an extreme volume but
if you have thirty people competing to sell you that
same copy of moby dick don't don't you think the
last guy just desperate to get it off his shelves
will drop the price really low and you'll take it
Yeah unfortunately then you have to read that book That 00:01:41.357 --> [endTime] book really will be your way