You enter a super market or grocery store to grab a pack of Potato Chips. Can you find one?
Nope, you can find many and many of those in single aisle!
This is a classic example of “Commodity Hell”
For the uninitiated, Commodity Hell is a situation where all the competing products offer the same benefits and price is the only differentiation factor.
Unfortunately, this Commodity Hell has become a curse to almost every industry. Each and every industry is forced to give consumers a compelling reason to buy their product over competing products.
So, even Social Enterprises have/ will become prey to this?
Well, Answer is straightforward if you figure the way out of this Commodity Hell.
Can someone say No to Starbucks? Of Course not! Just think this in terms of Commodity Hell.
Starbucks sells Coffee, one of the most ubiquitous products. So, how come Starbucks did not fall prey to this “Commodity Hell”?
Starbucks Chairman Schultz always insisted Starbucks as “third place” to hang out. The company stays true to its words by giving value addition like Wi-Fi and music along with Coffee. We are all aware of the unbelievable acceptance and success of Brand Starbucks.
Starbucks isn’t only one. There are many more in the list like Google, Microsoft, Walmart etc.
Simply put, winning the Commodity Hell is all about “Innovation”
Innovation being the core all Social Enterprises, they will never fall prey to the Commodity Hell.
But “Innovation” is not just enough to win and make a long term mark in today’s economy.
Winning Recipe for Social Enterprise should include both Innovation and BRAND ESTABLISHMENT