Beating the Commodity Trap

PREFACE

What do high-end fashion companies, New York restaurants, and Harley-Davidson have in common? Creeping commoditization. All are, or have been, in a battle against commoditization. Whether caused by a new low-cost competitor (such as fashion retailer Zara), new product innovation (such as enhanced customer experiences in restaurants), or the introduction of multiple substitutes and imitators (such as Honda, Suzuki, Victory, and Big Dog), price competition is always costly—and sometimes even deadly. It is clear that commoditization doesn’t just happen to commodities.

My own interest in commoditization goes back to my 1994 book Hypercompetition. Some people were kind enough to say that this book changed the way people thought about strategy. ...