The focus here is not on exchanged-traded goods such as wheat and oil, but rather on the seemingly interchangeable products in markets where price is the most important purchase criterion. Nonetheless, many companies can:

• Differentiate their pricing models: Companies can change their customers’ “eye level” for prices and even redefine their value propositions.
• Introduce alternatives: Bundling, the introduction of incremental innovations, or a more impactful innovation may warrant a shift from the Cost Game to a game on the right side of the Strategic Hexagon.
• Create an enduring cost advantage: Cost advantage is often the only sustainable source of price advantage, because competitors can’t match lower prices without endangering their own margins.

The right pricing strategy and model can turn commodities into growth opportunities, as Amazon Web Services (AWS) has demonstrated with its consumption-based model.