What is commoditization?

Answer 1

Com- is the natural process that occurs in many goods and services where limited expertise is needed to make or sell the product. An example is most of the products sold on Amazon.com or at Wal-Mart. It takes limited expertise to open a bookstore, so what happens is the company with the best price, sells the most. The affect of commoditization is that profits are reduced for all but the most competitive companies.

Hope that helps,
Dana B.