"for many of today’s industrial vendors the ability to create value is less than matched by the power to capture it, because in commoditized markets the customer is the driver in an unbalanced distribution of bargaining power. The consequences for suppliers can be serious: declining prices and margins, inferior returns on investment, and the risk of falling into a ‘commodity trap’ where the pressure on profitability leads to reduced investment in product (or service) innovation, which in turn leads to further loss of differentiation and even greater pressure on prices and margins. Few marketers can escape this vicious cycle with their shirts on.Dois exemplos da concentração nos inputs e não nos outputs.
Can industrial companies counter commoditization and avoid falling victim to their ever more powerful, hard-bargaining customers?.
The answer for a growing number of companies is an affirmative one. These firms have learned that while core product advantages erode and pressure on prices never lets up, they can still do profitable business by pursuing value-added strategies including aligning themselves with key customers. Put differently, these companies have discovered profitable opportunities in stretching beyond their core products by offering customers compellingly differentiated values. They have thus successfully countered commoditization.
Consider the following examples.
- SKF, the world’s largest ball-bearing manufacturer, ... to maintain their production machinery, reduce or eliminate downtime and maximize plant yield.
- Raisio Chemicals, a major supplier of chemical compounds ... developing new products, upgrading paper quality and improving printability. The company offers its important customers access to its technical staff and facilities, including a unique pilot coating machine and a newly built printing plant, for testing and experimentation."
Trechos retirados de "3 Countering Commoditization: Value-added Strategies and Aligning with Customers" de Kamran Kashani