Know-How Exchange : Strategy

First, you turn off your CAPS LOCK button ... it's annoying. Second, you tell us what MCX and NCDEX mean.

Commodity products are products that the customer doesn't differentiate one from the other. So the main way that you compete is by offering a better price.

Sometimes you can offer better services to keep customers.

Sometimes, but very rarely, a company is able to take a commodity product and turn it into a branded product which can command a higher price. Starbucks did this with coffee. This is hard to do.

A few times over the years we have been able to transform commodity products into branded products, improving margins substantially. The problem most often is that it takes a very large up-front investment, with no guarantees of success.