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By Andrew Holmes

During this groundbreaking booklet, Andrew Holmes units out why commoditization represents any such transparent and current probability to each company and all white-collar employees. He describes how commoditization is affecting whole industries and is more and more touching the paintings of the pro sessions. The proof is either attention-grabbing and compelling and it's transparent that the affects of commoditization are a ways attaining.

Holmes bargains companies and white collar employees a variety of strategic responses which are used to strive against its worst affects. And as commoditization maintains to make inroads into the company and dealing worlds, this booklet may be a useful better half to addressing the demanding situations which it offers.

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Example text

In order to explore how commoditization affects us now and in particular in relation to the modern corporation and white-collar work, we first need to take a look at how the process of commoditization has played out in the industrial setting using some well known examples, including the railway, telecoms and airline industries. As with coal, cotton and coffee, each started out with a limited footprint, each has grown significantly and each has become commoditized. In assessing commoditization at industry level we can start to see that just like the basic commodities, such as coal and cotton, there are similar factors that can lead to the commoditization of entire industries.

Tools and techniques to facilitate this initial exploitation begin to emerge and the usage and footprint of the potential commodity expands beyond its localized origins. Expansion occurs through word of mouth but more importantly through trade. This was true of both coffee and cotton which depended on the trade routes established by the Muslims. The third stage, extension ( ) involves a significant widening of the potential commodity as its value is recognized by a wider range of stakeholders. This is usually accompanied by further enhancements to the methods used to secure the commodity as well as advancements in the way it is exploited.

And, as with coal, the principal basis for our decision to purchase one product or service or another is increasingly down to price. You can see this in your local computer store; customers weighing up what computer to buy even though the basic functions are pretty much the same, the components are broadly identical and the only real differentiator is price. I increasingly see this in my consulting career; if clients cannot differentiate between the services my firm provides from another’s then they will make their decision as to who to employ on price.

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