Commoditization is the point at which an industry specific activity becomes common across industries, after which the need to keep it proprietary no longer exists.

Question

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This statement is true. Once an activity becomes common across industries, there is no longer a competitive advantage to keeping it proprietary. Commoditization occurs when a product or service becomes widespread and widely available, leading to a decrease in its price and differentiation. At this point, proprietary techniques or processes lose their value as they become common across industries.

Commoditization Is the Point at Which an Industry Specific Activity