Surviving in a Commoditized World
AbstractThis 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22053.
Date of creation: 01 Feb 2008
Date of revision:
Publication status: Published in University of Venice Working Paper 7.2008(2008): pp. 1-12
Commoditization; Ryanair; Wal-Mart; Starbucks; Tesco; General Electric and Dell;
Other versions of this item:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- A10 - General Economics and Teaching - - General Economics - - - General
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
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