In a certain commodity category, discriminatory conversion quality between the competitive commodity (function, quality and brand power etc.) is lost, mainly price or the quantity reaches the point where buying and selling is done in decision criterion. You call that there are many times when depreciation of commodity price is caused generally, when the expensive commodity to the cost reduction spread item they convert "commodity conversion", it is.

For example we assume that there was a product which can produce just 1 corporation which has a certain special technology in the manufacturing industry. Eventually when it becomes production possible at many companies the spread of manufacturing technology, the functional improvement of the other companies product or depending upon the standardization of the product/standardization/modularization etc., the product which does not have difference in the aspect of function and quality means in the market large number, to be thrown.

When this happens, as for the customer whether price (cost) or to buy cheapness (there is a shop front and so on) there is no selective primary factor other than. Thing of such state is called commodity conversion. If you restate, "buying those of whichever company, it is a state, same".

Commodity conversion is easy happening generally, function and quality improving, satisfies customer request with any product service, (overshoot) it becomes the way, the barriers to entry are low in the various aspects, are furthermore in the market which can expect the sale which is stabilized.

This kind of commodity conversion is seen in the always various markets, generalization general-purpose conversion of technology is pointed out even at various high-tech industries such as IT.

When commodity conversion happens, price depreciates with competition intensification, the business profit deteriorates. As for enterprise what endeavors variously is required vis-a-vis this. The 1 Tsuga "brand conversion" is. Being something which assures discrimination conversion with the marketing activity of naming and the packaging etc., you can list to the rice which at one time is the commodity the example where the brand United States "of the system" filter ? temporary "" Akita beauty "and so on appears in the bamboo grass".

In addition, Cray ton M Christensen of the American Harvard business college (Clayton M. Christensen) as for the professor, "when with the most commodity commodity conversion and modularization happen, somewhere of the valuechains 'deviation from commodity conversion ' process occurs this as an opportunity", that you discuss. This when efficiency competition of the product itself ends, "enters into the hand directly", "correspondence when breaking down is good", it is the indication that and so on it reaches the point where discrimination conversion happens with process of delivery and the after-sales service.

Originally, it points to the kind of commodity which is bought and sold the commodity in the commodity transaction market. Concretely, raw material such as mineral resource and fiber such as agricultural products, petroleum coal gold such as wheat and corn & silver it is rubber etc..

The commodity (commodity) with the word which is said consists of, can interpret com (simultaneous) + mod (the scale) + ity (state)"those which have become a state where you can measure with the single scale", but generally at the commodity exchange buying and selling is done the fixed standard item as an object. The petroleum (the crude oil) WTI and North Sea ????, the Dubai crude oil is famous the standard item (the marker) as. Actually when the spot goods which are delivered are not the standard item, adjusting the balance of the standard item, it liquidates.

The DRAM futures the Singaporean exchange (SGX) are presented including something related to computer. In addition, the general-purpose electronic part the spot market is formed with the trader room arrangement pulling including semiconductor memory, price is decisive with supply and demand. In addition, the business lighter/writer/the Nikolaus G car of the editor (Nicholas G. Carr), with "IT Doesn'tMatter "dispute was created in 2003 dealing with the commodity conversion of IT.