CommodityMarket

Last edit April 20, 2004
A market in which all products are standardized and graded. Goods are distinguished by price and availability. As a result, profit margins are small.


Is Linux a CommodityMarket?

If and when every distribution offers equivalent functionality and service then Linux distributions will be a commodity.

A way to enter CommodityMarkets and at the same time producing a monopoly is to EmbraceAndExtend.

No, that's a way to keep your market from turning into a commodity market.


There are other distinguishing features of a CommodityMarket (in the sense used by economists; in this sense no software is a true commodity though some comes close).

  • Products not differentiated by brand name, etc; if products are differentiated based on quality; there are well-known, agreed-upon and easily observable standards for determining quality.

  • Main differentiators are price, delivery, and availablility.