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commoditize

verb

Pronunciation

UK

  • /kəmˈɒdɪtˌaɪz/

US

  • /kəmˈɑːdɪtˌaɪz/

Description

To commoditize something is to turn it from being unique or special into something standard that can be easily swapped for similar options—like turning art into mass-produced prints. Think about fresh, local strawberries versus the ones you buy prepackaged at the grocery store. The local berries feel unique; the packaged ones have been commoditized.

It often happens when technology makes things easier to replicate or scale. Information used to be hard to get; now access to it is largely commoditized thanks to the internet. While making something accessible can be good, commoditization sometimes means losing quality or individuality in favor of lower prices and wider availability. It is a common term in business, describing how products or services become so standardized that price becomes the primary factor for consumers.

Examples

  1. 1

    Consumer products

    As more companies started making similar laptops, it became harder for any one brand to stand out, and the product was quickly commoditized.

  2. 2

    Software business

    The CEO said the company had to keep innovating or its software would be commoditized.

  3. 3

    Retail pricing

    Cheap imports have commoditized the market, so stores now compete mostly on price.

  4. 4

    Financial services

    Once online brokers offered the same basic tools, stock trading was largely commoditized for ordinary investors.

  5. 5

    Music streaming

    Many musicians worry that streaming platforms commoditize music by treating songs like endless, interchangeable content.

Forms and spellings

1 form open this card.

Main spelling

  • commoditizeverb