Definition, Meaning & Synonyms

commoditization

Noun

/kəˌmɒdəˌtʌɪˈzeɪʃən/

Definition

The process by which goods or services that are not traditionally considered commodities become standardized and widely available, often leading to lower prices and increased competition.

Examples

The commoditization of organic food has made it more accessible to everyday consumers.
As technology advances, many specialized software tools are facing commoditization, leading to increased competition.

Meaning

Commoditization refers to the transformation of products or services into commodities that can be traded on a market, typically resulting in uniformity and interchangeability, making it harder for businesses to differentiate their offerings.