kommoditeettia

Kommoditeettia, often anglicized as "commodity," refers to a basic good used in commerce that is interchangeable with other goods of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a commodity must be uniform across all suppliers; otherwise, buyers would have a preference for one supplier over another. This is a key feature of a true commodity.

Examples of commodities include oil, natural gas, gold, silver, copper, wheat, corn, and coffee. These are typically raw materials or primary agricultural products. They are traded in bulk on organized exchanges, where their prices are determined by supply and demand. The fungibility of commodities means that a specific unit of a commodity from one producer is essentially identical to a unit from another producer, making price the primary differentiating factor.

The concept of commoditization also applies to manufactured goods or services that were once unique or differentiated but have become standardized and available from many suppliers at competitive prices. In this context, a product or service becomes a commodity when its unique selling propositions diminish, and it is largely judged on price and availability. This can put pressure on businesses to focus on efficiency and cost reduction to remain competitive.