Surviving in a Commoditized Worldy

Andrew Holmes and John Ryan
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Andrew Holmes: Partner, Paricint

No 2008_07, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: This paper examines why organizations have adopted a wide range of responses when addressing the opportunities and threats posed by commoditization. Some may choose to focus on their cost base, whilst others may focus on innovation. Whatever strategy is adopted, it will be driven by a range of factors including the market or markets in which the organization operates the nature of its competition and how easy it is for them to become commoditized. This paper will present Ryanair, Wal-Mart, Starbucks, Tesco, General Electric and Dell as examples of which highlight how different organizations have approached the challenge of commoditization. What we can conclude from these is that there are many different ways to tackle commoditization and that many organisations do so successfully. For those organizations which are comfortably outside the commoditized zone, it will give them some insights on what to do should the risk of commoditization increase to a point where action is necessary.

Keywords: Commoditization; Ryanair; Wal-Mart; Starbucks; Tesco; General Electric and Dell (search for similar items in EconPapers)
JEL-codes: A10 D21 D23 D24 D40 F02 (search for similar items in EconPapers)
Pages: 13
Date: 2008
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Working Paper: Surviving in a Commoditized World (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2008_07

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