This presentation tells us about how innovations turn into commodities

1. Services and Product Commoditization

2. Presented by: AbhimanyuKhanna (01) MahiArora Kavya Kumar LekhaRath SidharthKalia RahulMalhotra (34) Vaibhav Singh (53) SiddharthSabu (59)

3. Innovation First attempt to carry out an idea into practice

4. Commoditisation, a neologism, describes how an economic good that is distinguishable in terms of attribute…. …ends up becoming a simple commodity in the eyes of the market or consumer

5. A Commoditized Innovation 1890s electricity was novel and a poorly understood field 1930s we had the national grid, standards and the use of electricity was common

12. Commoditisation is no longer just about machinery, computers and plants Human capital, skills and expertise

16. Strategy of ‘everyday low prices’

17. Built a logistics pipeline of ‘everyday low cost’

18. Extremely efficient ‘backroom’ and logistics support

20. Underlying Causes Industries mature Barriers to market entry gradually erode Competition intensifies Distinction between brands and varieties vanishes Technology continues to disrupt the status quo

21. Consolidation No formula for combating commoditization How it is dealt with largely depends on the nature of the industry and the mode of competition therein

22. Brand Differentiation Avoid the temptation to be the low price leader Seek out new operating mode Bundle services to add value Understand the product or service life cycle Prestige and Image are intangible Transform the company’s business model

23. Benefits For Companies For Customers: Keep the Product Quality High Provide Great Customer Service Helps build a brand image Keeps them open to change Keeps them connected to the target market

24. Generic Strategies

25. Stretching Beyond the Core GE’s Healthcare division

26. Future Outlook A holistic branding approach is key to the survival of a commodity, just as strong differentiation is to protect oneself from a commodity. Brands need to be revitalized, repositioned, and always relevant to the market.

27. THANK YOU