Commoditized

Commoditized refers to the process by which a product or service becomes indistinguishable from others in the market, leading to reduced differentiation and increased price competition. When a product is commoditized, it is viewed primarily as a basic good rather than a unique offering, often resulting in consumers choosing based on price rather than brand or features.

Examples:

• Oil: Crude oil is a classic example of a commoditized product, where different sources provide similar quality, leading buyers to focus on price.
• Smartphones: As many brands offer similar features, smartphones can become commoditized, with consumers often opting for the cheapest option.

Cases:

• Airline Tickets: Many airlines provide similar routes and services, causing ticket prices to become a primary factor for consumers.
• Computer Memory: RAM products from various manufacturers often have the same specifications, leading to competition primarily on price.