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Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power Hardcover – January 12, 2010
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Top Customer Reviews
So, if you are a company facing a sort of commoditization situation, you should first go through the pages of this book, find your specific commoditization situation, and then read what other companies did when they faced similar situations. Explanations you will find will be shallow and won't tell you much. Also, yours may be a small company but stil you will have to pick among alternative strategies as those preferred by giant companies like Hilton Group, Wal-Mart etc. This is only to be expected as the solutions in the book are not based on any THEORY at all. "Take the example, try to use it, even if the company in question is a behemoth". This way the book becomes a useless list of many different strategies, more like a patchwork.
But the book suffers from an even more serious shortcoming: It draws on an inside-out approach to strategy. There is no CONSUMER in this approach. There is a list of war-game strategies to choose from and there are situations of commoditization. You are then advised to match your commoditization situation with the possible example solutions. Totally inside-outside. This approach is very very dangerous and I urge the reader to stay away from this book.Read more ›
The book does not (and should not) include specific plans of attack other than through example because the complexities of actually implementing the recommended analysis and selecting a response strategy require organizational and market context for your situation. Sometimes readers are looking for "the solution" or "the magic pill" for their specific problem and this book provides you the principles and basis of understanding to start down that path while avoiding fatal mistakes.
The book does provide substantiated principles and a structure that can be used with your organizational and market context to beat the commodity trap. These principles are non-trivial, presented in an organized way and D'Aveni should be commended for providing this new framework.
Here are some points/quotes I enjoyed from the book:
a. "Once a company is caught in a commodity trap, differentiation is rarely enough to get it back out."
b. In D'Aveni's experience "commoditization is usually the result of failure to act early enough"
c. With regard to just discounting prices to battle the competition D'aveni states "This has the unfortunate and unintended effect of increasing the depth and severity of the commodity trap.'
d.Read more ›
Professor D'Aveni categorized commodity trap into three types, namely deterioration, proliferation, and escalation in which they differ significantly in terms of how market rivals combine price with benefits to their products and services. In these three commodity traps, marketers can offer customers to get more for less or alternatively identify a sweet spot to create new customer segments and benefits in the price-benefit map. In this book, Professor underscores the turbulent and shaky state of economy since the 2008 Global financial crisis and suggests marketers to anticipate and diagnosis how commodity traps occur and develop before formulation of threat management strategies for responding to different traps.
In a nutshell, this book has its unique value to marketers. First, commodity traps are pernicious but unavoidable due to rapid pace of technological disruption, globalization, and shifting customer needs. Accordingly, competitive advantages are not sustainable if marketers cannot beat such commodity traps. This book effectively guides marketers how to recognize and how to respond (re-seizing, outflanking, selecting, containing, and sidestepping strategies) to the threat of commoditization. Second, the appendix (Pp.Read more ›
Most Recent Customer Reviews
The author is known for inventing his own terminology and writing overly complicated books (e.g. Hypercompetition). Read morePublished 8 months ago by Jackal
Poor, incorrect, horrible. I really don't think this guy knows what he is talking about. I have only read it for one reason, school. Read morePublished on September 23, 2011 by F. Knight
I was amazed by Beating the Commodity Trap. I believe that this book is differentiated from most other strategy-based books through 3 main factors. Read morePublished on June 3, 2010 by Nicole Maria Racco
Beating the Commodity Trap successfully develops a step-by step management decision making tool that faces this challenge. Read morePublished on May 5, 2010 by Silvia Vianello
This new book by Richard D'Aveni provides a high-level, strategic view of commoditization across many products, industries and geographies. Read morePublished on April 7, 2010 by C. Allen