Commoditization

Commoditization is when things become very similar to each other and people just pick the cheaper one. Imagine you were at a store looking at apples. They all look the same, they all taste the same, and they are all the same price. You would just pick the one that costs less, right? This is what happens when things become commoditized.

Now, let's say you are a farmer who sells apples. You want to make sure your apples stand out from the other apples in the store. You might make them look different, taste different, or package them in a unique way. This way, people will be more likely to buy your apples and not just pick the cheapest option.

But sometimes, even if you try to make your apples different, other farmers may copy your ideas and soon all the apples will look and taste the same again. This is how commoditization happens.

The same thing can happen with other products or services too, like phone plans or airline tickets. When things become too similar, people might just choose the cheapest option without considering other factors. This can make it hard for businesses to compete and stand out from each other.