What is Commoditization?

Commoditization or commodification is the transfer of varied services and goods into a commodity. It has different meanings in business dependant on its use in any given context.
Basically in business, a branded type product can be transferred into a market that has undifferentiated pricing competition. Economically it can mean the change from a monopolized competition form into a perfect competition form. In essence, a product or service becomes a commodity when its performance is overly abundant through repeated competition changes and so the competition outplays itself. This transfer can be deliberately planned or can occur accidentally, with or without a monopolizing company or companies being directly involved.