Word on black buttonMany of today’s companies are competing on price and have razor thin margins on their products. As a result, they’ve commoditized their product and have to rely on high volumes to make money.
Fortunately, even though it’s a tough world out there, you can decommoditize your commodities.
In fact, you can decommoditize every product and every service. Skeptical? Here’s an example.
A number of years ago I was working with Cadbury Schweppes. Some of their product lines are 7-Up and Dr. Pepper. They asked me, “How do you decommoditize a carbonated soft drink?
They went on to explain that all carbonated soft drink sales have been declining by about 2% a year, consistently, as we drink other things. Like Coke, Pepsi, and all the others, Cadbury Schweppes was not very happy because of those slowly declining sales and thin margins. So I said, “Let’s take one of your popular products, 7-Up, and decommoditize it.” (more…)
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