Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power Review

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Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power ReviewI was amazed by Beating the Commodity Trap. I believe that this book is differentiated from most other strategy-based books through 3 main factors. The book takes a long term orientation, provides a big picture view of competitive strategy, and explains the book's sophisticated methodology so well that business people can use it.
First, the book is not concerned with short-term marketing ploys that boost profits and volume for the next quarter. Beating the Commodity Trap focuses on looking into the future. It provides tools that help predict the market in a 2-3 year time range, and focuses on the long term positioning of a product within the market as well as changes in customers' willing to pay for different product or service attributes.
Second, providing tools that reveal the big picture is not an easy task. The book's price-benefit maps couple with a deep understanding of the industry reveals the big picture by showing strategic groups, trajectories of products, and provides the data to discern the motives of rivals. One of the book's outstanding achievements is that it demonstrates how to use price-benefit mapping and analysis in a large number of industries, including the hotel, restaurant, retail, apparel, ship building, consumer electronics, and motorbike industries.
Third, I really appreciate that the author devotes considerable emphasis to explaining the methodology he uses. I found it a concrete and practical tool that plays with two key dimensions of a company's competitive advantage: product positioning and competitive manuevering.
The author has very high credibility. He is a very respected professor and consultant who is able to simplify a complex challenge like commoditization and split it into 3 different types, bringing recognizable cases to solve the challenge of each scenario. I personally enjoyed the author's ability to take the perspective of several competitors simultaneously. In the Zara case, he not only explains Zara's well-known strategy, but he also reveals the less well known responses if its competitors, such as Hermes, Diesel and the Italian silk manufactures. In the restaurant industry the author explains how and why restaurants change their price-benefit ratio to offer better value to customers based on how customers are willing to pay for different cuisines, locations, and different levels of service, décor and food quality. While most managers guess about how much customers are willing to pay for these attributes of restaurants, the authors shows us how to quantify the dollar amounts they actually pay.
I firmly believe that Beating the Commodity Trap enables executives to foresee and identify important marketing challenges that, when addressed using his suggested strategies, can earn significant price premiums for companies, in both manufacturing and service industries.
Beating the Commodity Trap: How to Maximize Your Competitive Position and Increase Your Pricing Power Overview

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