Creative Cost-Benefits Reinvention: How to Reverse by Christian Dussart (auth.)

By Christian Dussart (auth.)

Using concrete examples this ebook places the commoditization phenomenon less than the microscope, laying out an financial research, by way of suggestions and strategic recommendations.

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Additional info for Creative Cost-Benefits Reinvention: How to Reverse Commoditization Hell in the Age of Customer Capitalism

Example text

The final result is the selling of a selective salt at a sizeable premium. Salt is not salt anymore. Commoditization as a Loss of Managerial Control From a general managerial perspective, commoditization means a present and future loss of control by companies over their business assets, that is, their brands and financial returns and, ultimately, their potential survival. ”). Business equity is on shaky ground. All these effects are creating real nightmares not only for marketing experts but also for many corporate executives, especially those who sell products or services that were not previously associated with commodity markets but are now deeply engaged in them.

I cover the main transformations without going into detail. Digressions may be interesting in their own right but have limited strategic implications. This book performs a strategic analysis, not a tactical one. ) Market Analysis of new trends in consumer spending clearly shows that premium and no-frills offerings are squeezing out middle-of-the-road products and services in many industries. This new economic phenomenon is called market polarization. Is it caused by or closely related to commoditization?

New conceptual frameworks show that the polarization of markets is closely related to the creation of a “mass-tige” market, in which the revised price-quality relationship is the main underlying conceptual explanation. New conceptual tools will improve our understanding of what is actually going on. This chapter presents a balanced long-term view of the current trends in consumption and buying patterns. The focus is on the advanced economies, also known as the incumbents, but emerging economies will also be discussed.

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