commoditization   308

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Supersmart Manufacturing Tools are Lowering Prices on TVs, Bulbs, and Solar Panels
There are two types of knowledge—explicit and tacit.
Explicit knowledge is something that is documented and is something we can search for. Maybe we look it up in a library, a recipe book, or an instruction manual for making something. As long as you can write it down or clearly explain it so other people can understand it and duplicate what you have done, it is explicit.

Tacit knowledge, on the other hand, is trickier. It is know-how that is carried around in the heads of people that hasn’t necessarily been written down, and combines skills, prior experiences, and ideas that are not easily expressed. “We can know more than we can tell,”

Production tools have always incorporated some amount of knowledge

commoditization [is] happening at the level of many intermediate goods—components—that get incorporated into other products.

...what products are particularly susceptible to being commoditized?

high volume, high tech hardware products where the production process involves more machine/automation and less labor are vulnerable, especially anything incorporating electronics. It’s also instructive to watch industries China is subsidizing where there are dramatic capacity expansions
learning_development  learning  commoditization  manufacturing 
august 2018 by tom.reeder
The Limits of Amazon
Jan. 1, 2018 | WSJ | By Christopher Mims.

Amazon’s core mission as a data-driven instant-gratification company. Its fanaticism for customer experience is enabled by every technology the company can get its hands on, from data centers to drones. Imagine the data-collecting power of Facebook wedded to the supply-chain empire of Wal-Mart—that’s Amazon.

There is one major problem with the idea that Amazon-will-eat-the-entire-universe, however. Amazon is good at identifying commodity products and making those as cheap and available as possible. “Your margin is my opportunity” is one of Chief Executive Jeff Bezos’s best-known bon mots. But this system isn’t very compatible with big-ticket, higher-margin items.....

How Amazon Does It
Amazon now increasingly makes its money by extracting a percentage from the sales of other sellers on its site. It has become a platform company like Facebook Inc. or Alphabet Inc.’s Google, which serve as marketplaces for businesses with less reach of their own.....Eventually, Amazon could become the ultimate platform for retail, the “retail cloud” upon which countless other online retail businesses are built....Think of Amazon as an umbrella company composed of disconnected and sometimes competing businesses, though critically they can access common infrastructure, including the retail platform and cloud services.

Ultimately, these smaller businesses must feed the core mission. Amazon’s video business isn’t just its own potential profit center; it’s also a way to keep people in Amazon’s world longer, where they spend more money,

What Amazon Can’t Do
Ultimately, the strategies that allow Amazon to continue growing will also be its limitation. “If the platform needs to be one-size-fits-all across many, many different product categories, it becomes difficult to create specific experiences for different kinds of products,”
contra-Amazon  Amazon  strengths  data_driven  instant_gratification  customer_experience  platforms  one-size-fits-all  limitations  Jeff_Bezos  weaknesses  commoditization  third-party  Christopher_Mims 
january 2018 by jerryking
As Litigation Rises, A Glimpse of What Keeps Corporate Counsel Up at Night | Law.com
Businesses are experiencing a rise in litigation and the main areas of concern for legal departments are contract disputes, labor and employment claims and regulatory investigations, according a recent survey of in-house lawyers and executives of more than 600 companies.

The 2016 litigation survey released by Norton Rose Fulbright polled attorneys working for 606 companies located all across the world—more than half with annual revenue of at least $1 billion. Topping their collective litigation worries were contract disputes at 42 percent, and a tie between labor and employment claims and regulatory investigations at 35 percent.

The survey noted that contracts and labor are most concerning to corporate counsel because of their prevalence and financial risk. Regulatory investigations also spark concern because of their complicated nature and reputational risks to the companies.
clients  litigation  commoditization 
september 2016 by JordanFurlong
Why Telcos Are Going to Smash the Google/Facebook Ad Duopoly | ExchangeWire.com
Das werden sie nicht tun können. Why Telcos Are Going To Smash The Google – Facebook Ad Duopoly
commoditization  from twitter
july 2016 by grzbielok
GoPro Isn’t Doomed Yet. But they must become a software company, fast.
GoPro needed to spend heavily in “video editing automation.”
GoPro needs software in spades, far beyond just something to make editing easier. The company that created the first mass-market visceral experience broadcasting device ought to have a hand in every dimension of the current live revolution, not just be one of its few cameras. That requires software. [...] Most consumers already have all the hardware they need to create video; what they need is software to make this infinity of images comprehensible. As the defensibility of hardware declines, GoPro has an advantage few other makers of software have: fans, tens or even hundreds of millions of them.
Software  Is  Eating  The  World  Software  Eats  The  World  commoditization  commodity  business  Brand  Canon  Nikon  Kodak  Instagram  Beme  Vine  Snapchat  Entertainment  Selbstdarstellung  streaming  Twitch  Periscope  Meerkat  virtual  reality  VR  Augmented  Android  iPhone  Apple  premium  aspiration  status  anxiety  consumerism  materialism  mass  market  Pop  Culture  Hardware  Unicorn  DJI  Drone  Consumer  App  Consumer  Software  video  editing  Vlog  Vlogging 
april 2016 by asterisk2a
The Uber Model, It Turns Out, Doesn’t Translate
Uber for X // Startups that deliver what you want, when you want it — like Uber, but for groceries, laundry, munchies, etc. — are revamping their business plans or shutting down entirely. It turns out that the on-demand model is so cash-intensive that it only really works if you're, well, Uber.
Uber  Uber  for  X  Uber  Playbook  Lyft  on-demand  mobile  homescreen  convenience  Share  Economy  Gig  Economy  self-employment  1099  Economy  marketplace  efficiencies  TaskRabbit  Zero  Hour  Contract  commodity  business  commoditization  Niedriglohnsektor  Service  Sector  Jobs  job  insecurity  job  creation  job  security  job  market  freelancing  freelance  precarious  work  working  poor  Silicon  Valley 
march 2016 by asterisk2a
Episode 064 — Disrupting Trump by ExponentFM
37:00 - people go to amazon. pipe of stuff // same w Netflix - pipe of entertainment / front door of entertainment // cost free, marginally no cost to expand // key is now discovery! // but suppliers have no choice. cost pressure. // aggregation theory // differentiation only from being irreplaceable. unique. focused. narrow. avoid go out of way of commoditization. price is dead. newspaper itself has been fractured, broken up. // amazon is default for consumers. // how would you build a business that fit into amazon? that still makes you successful? differentiate to the point where you get a direct connection to the consumer! << custom to order quote paintings and other!? Want to compete in a completely new arena! where things are not scalable. where people can't compete on price with you. no "low-end focus" // winner take all effects - monopsony - size leverage to command conditions. // 1:12:00 find a niche
Amazon  Prime  e-commerce  Netflix  economics  of  abundance  abundance  marginal  cost  long-tail  subscription  model  subscription  publishing  2.0  digital  publishing  self-publishing  newspaper  Print  is  Dead  Etsy  Marketplace  commodity  business  commoditization  differentiate  differentiation  Gary  Vaynerchuk  Start-up  of  You  lesson  advice  Retail  pure  play  oligopoly  oligopol  competitive  competitive  advantage  competitiveness  monopsony  Brand 
february 2016 by asterisk2a
Sports Direct is a reflection of the modern British economy | Letters | Business | The Guardian
Sports Direct seems to be a metaphor for the modern British economy. “The conscious strategy would seem to be to rely on cheap labour rather than costly investment,” as your editorial (11 December) says. It also illustrates the epidemic growth of workforce insecurity which plagues a nation scarred by the rise of the precariat. Britain is rapidly becoming the sweatshop of Europe, and this, along with bubbles in consumer debt and house prices, has been a major part in such anaemic recovery as we have seen over the past five years. [...] [ HMRC cut under austerity, can't do it's job ] //&! theguardian.com/business/sports-direct-international //&! bit.ly/1jTkmsi - transferring assets. then bringing in administrators. leaving suppliers empty.
corporate  scandal  Precariat  working  poor  precarious  work  job  security  low  pay  low  income  investigative  journalism  Whistleblower  Amazon  Retail  Online  Shopping  commodity  business  commoditization  crony  capitalism  capitalism  Wall  Street  shareholder  value  profit  maximisation  George  Osborne  industrial  policy  STEM  David  Cameron  Tories  nasty  party  underinvestment  Conservative  competitive  competitiveness  self-regulation  regulation  regulators  Zero  Hour  Contract  Contractor  exploitation  lobbyist  lobby  Lobbying  trickle-down  economics  neoliberalism  neoliberal  microeconomic  policy  macroeconomic  policy  macroprudential  policy  business  investment  productivity  output  gap  austerity  tax  evasion  tax  avoidance  corporate  welfare  white-collar  crime  subsidies  subsidizing  HMRC  Trade  Union  Workers  Union  skills  gap  accounting  scandal 
december 2015 by asterisk2a
Some big firms are finding profit in commoditized work
As with CaseSmart, Flex by Fenwick uses flex-time attorneys, but unlike Littler’s model, Flex doesn’t provide hourly rates. “A client has to commit to some minimum number of hours; or when demand is higher, days per week,” says Pais. “Like many cellphone plans, it’s a ‘use it or lose it’ model, so if the client ends up using less than they’ve committed to, the implied hourly cost increases—but this rarely happens. … When you calculate the implied hourly rate and compare those with law firm rates, the cost is half or less.”

Ben Barton, a professor at the University of Tennessee College of Law, believes the reason many large firms have passed on doing cheaper legal work is because they don’t know how to do it profitably.

“Large firms at the lower end of the Am Law 200 will need to figure out how to do that kind of work profitably to scale, or they’ll have a hard time staying in business,” Barton says. “I think we’re already at the point where this kind of work is dominant.”
commoditization  flex  process 
november 2015 by JordanFurlong
Microsoft Sees That Apple Has Been Right All Along | Re/code
If you look at Microsoft’s new strategy, you can’t help but see that this is an acknowledgment that Apple’s business model of owning the hardware, software and services is ultimately the best one to assure Microsoft’s control of its own destiny.
Apple  Microsoft  commodity  business  commoditization  Hardware  Software  Is  Eating  The  World  Android  Windows  10  iOS  mobile  homescreen 
october 2015 by asterisk2a
002_2 : by hand
"“Fake humans generate fake realities and then sell them to other humans, turning them into forgeries of themselves.” (Dick, 1978)

“…the reign of things over life….exiles from immediacy” (Zerzan, 2008b:39, 40)

Verbs become nouns[1], nouns acquire monetary equivalents (Bookchin, 1974:50) and being is exchanged for having (Vaneigem, 1967:chpt8). We no longer ‘garden’ or ‘play’ or ‘cycle’ (or even ‘know’ (Steigler, 2010; Zerzan, 2008b:41). The world is arranged so that we need not experience it (Zerzan, 2008b:40) so that we consume the image of living (Zerzan, 2003). Places exist only through the words that evoke them; their mere mention sufficient to give pleasure to those who will never experience them (Auge, 1995:95). The city of the fully industrialized they[2] ‘have’ (call their own) gardens and green space and cycling tracks; private toys, asphalt playgrounds and indoor play centers on the roofs of department stores at 1000 yen an hour per child plus extra for ‘food’ and parking[3]. All which are made ‘for’ them and ‘paid for’ with taxes by polluting corpo-governmental free enterprise. This vocabulary weaves the tissue of habits, educates the gaze and informs the landscape (Auge, 1995:108) while diminishing richness and working against perception (Zerzan, 2008b:45).

Now, space is stated in terms of a commodity[4] and claims are made in terms of competition for scarce resources (see Illich, 1973:56). The actor becomes the consumer, who gambles for perceived nouns[5]. This is a problem, because experience is not simply passive nouns but implies the ability to learn from what one has undergone (Tuan, 1977:9) – the (biological) individuality of organismic space seems to lie in a certain continuity of process[6] and in the memory by the organism of the effects of its past development. This appears to hold also of its mental development (Wiener, 1954:96, 101-2, see also Buckminster-Fuller, 1970) in terms of use, flexibility, understanding, adaptation and give.

“[The] city is not about other people or buildings or streets but about [..] mental structure.” (Ai Wei Wei (2011)

Primary retention is formed in the passage of time, and constituted in its own passing. Becoming past, this retention is constituted in a secondary retention of memorial contents [souvenirs] which together form the woven threads of our memory [mémoire]. Tertiary retention is the mnemotechnical exteriorization of secondary retentions. Tertiary retentions constitute an intergenerational support of memory which, as material culture, precedes primary and secondary retentions. Flows, Grammes. This layer increases in complexity and density over the course of human history leading to increasingly analytical (discretized) recordings of the flows of primary and secondary retentions (e.g. writing, numeration). Use (movement, gesture, speech, etc, the flows of the sensory organs) is a flow; a continuous chain, and learning consists of producing secondary use retentions but discretization leads to automation – analytically reproducible use as tertiary retention resulting in retentional grains (grammes) – functionalization, and abstraction from a continuum (from ‘Primary retention’ Stiegler, 2010: 8-11, 19, 31). Memories of memories, generic memories[7]. Result: Ever more complete control over individuals and groups who are made to feel that they do not adequately understand themselves – that they are inadequate interpreters of their own experience of life and environment[8].

The exteriorization of memory is a loss of memory and knowledge (Stiegler, 2010:29) – a loss of the ability to dig deep[9] and venture forth into the unfamiliar, and to experiment with the elusive and the uncertain (Tuan, 1977:9). Nothing is left but language, and a persistent yearning arising from one’s absence from the real world; Reductive. Inarticulate. (Zerzan, 2008b:44-5)."
play  gardening  aiweiwei  ivanillich  christopheralexander  murraybookchin  anarchism  anarchy  life  living  jacquesellul  remkoolhaas  zizek  richardsennett  johnzerzan  raoulvaneigem  reality  consumerism  society  pleasure  gardens  space  bernardstiegler  marcaugé  flows  grammes  yi-futuan  sace  commoditization  experience  buckminsterfuller  flexibilty  understanding  adaptation 
october 2015 by robertogreco
Seth's Blog: Selling like Steve
Average stuff for average people is getting ever more difficult to sell. If that's all you've got, get something else.
differentiate  differentiation  aspirational  product  zombie  consumer  status  symbol  status  anxiety  Apple  Steve  Jobs  Android  Google  iOS  Hardware  commodity  business  Branding  commoditization  Fashion  Industry  marketing  Positioning  advertisement  advertising 
october 2015 by asterisk2a
Robots are coming for your job. That might not be bad news
The problem with automation isn’t technology. The problem is capitalism. // [ Deflationary pressure, 3bn people in developing world and frontier markets unemployed, waiting to join workforce. ] [ who buys the gadgets and widgets when half the world is unemployed ] // This time, as Martin Ford argues in Rise of The Robots, education and upscaling won’t help us. There will simply be fewer jobs to go around, as everything from accountancy to journalism will be done faster, cheaper and more efficiently by machines. The result, as Jerry Kaplan agrees in Humans Need Not Apply, is that billions will be left destitute – unless we radically rethink our way of keeping people fed.
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october 2015 by asterisk2a

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