
Ask HN: What can prevent a product to become a commodity? - skdotdan
Network effects is a well-known effect that can prevent a product to become a commodity.<p>Are there other similar effects? Is there any systematic way to think about them? Any well-known theory or resource (books&#x2F;blogs)?<p>I&#x27;d say it would be useful to have basic knowledge about this topic, for both investing or discarding business ideas. In my case it&#x27;s just for the sake of curiosity.
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Nomentatus
There's some mystery in this, according to Warren Buffett. He knows that
breakfast cereals aren't commodities - they can charge a premium, and stay in
business profitably for decade after decade. But most of the other goods in
the same supermarket are much closer to commodities. He isn't sure why. (Maybe
it's cause we find it difficult to make decisions in the morning and so become
captive to habits then, but not at suppertime?)

(Yes, IP is a way to escape the commodity trap, too: but not suitable in most
cases. File IP under "nice work if you can get it," because almost always it's
rather easy for others to work their way around your IP. Even with patents -
it's an intentional feature of the patent system that others be allowed to
find and use their own methods to accomplish what you just showed can be
done.)

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skdotdan
Thank you for your answer. Do you have the original source of Warren Buffet
saying this?

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sharemywin
Trademark

Copyright - code, books, movies, creative works

Patent -

Trade secret - coke, pepsi

Manufacturing Scale - intel, cars, etc.

patent/trademark combination - patent an idea and market it with a trademark

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skdotdan
Great list. Thank you for your answer.

