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Article: Commoditization drives markets.(Editor at Large)
- Article from:
- ECN-Electronic Component News
- Article date:
- March 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Advantage Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Commoditization is an oft-misunderstood force in the electronics industry. When products evolve toward a standard configuration, interface, package or functionality set, they are on a path to becoming commoditized. When this happens, multiple vendors can provide interchangeable components to solve a given problem. The PC industry is a good example of a highly commoditized industry. Despite occasional incompatibilities, when purchasing PC hardware, we have every expectation that peripherals such as monitors, DVD burners, printers and other items will work with a variety of vendors' products.
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So that's a good thing, right?
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