commoditization
kuh-MOD-ih-tuh-ZAY-shun
Definition
The process by which goods or services become indistinguishable from those offered by competitors, typically leading to market competition based solely on price.
Etymology
Derived from the Latin 'commoditas' meaning 'convenience' or 'fitness,' the term evolved through the economic concept of a 'commodity.' It entered common usage in the late 20th century to describe the leveling effect of mass production and globalization.
In the news
The article uses the term to discuss the pressure on IFF's specialized product lines to compete on price rather than innovation. This risk is central to the company's valuation concerns as margins tighten.
Can International Flavors & Fragrances (IFF) Justify Its Valuation After Q2 Results And Asset Sale?
Read the full article ↗simplywall.st