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Beating the Commodity Magnet

By: V. Kasturi Rangan and George T. Bowman
  • Format:Print
  • | Pages:14
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Abstract

All markets follow a cycle of growth and maturity, then commoditization and decline. This note argues that while commoditization of an industry may seem inevitable, the better managed firms find a way to make money in the commodity cycle. These firms know how and when to differentiate their products through innovation, service, and customer partnerships; and how and when to offer a "no-frills" product, and seek cost leadership. Four such strategic options are detailed and discussed. A rewritten version of an earlier note.

Keywords

Goods and Commodities; Financial Markets; Competitive Strategy; Financial Services Industry

Citation

Rangan, V. Kasturi, and George T. Bowman. "Beating the Commodity Magnet." Harvard Business School Background Note 594-122, June 1994. (Revised September 1994.)

About The Author

V. Kasturi Rangan

Marketing
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