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Decommoditization
Strategies used to differentiate products in markets where goods are typically seen as interchangeable, often through branding, packaging, or added features.
Implications
The process of differentiating a product or service that has become commoditized, often through branding, innovation, or added value, to avoid price competition and increase perceived value.
Example
Example: A coffee company engages in decommoditization by promoting its fair-trade, organic beans and offering unique brewing methods, allowing it to charge premium prices despite competition from cheaper brands.
Related Terms
Different from commoditization, where products become indistinguishable and compete primarily on price, decommoditization focuses on creating unique value to stand out in the market.
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