Many managers in high-tech companies believe that market success depends primarily on the price-performance ratio. At the same time, however, most would acknowledge that the bulk of their offerings are fast becoming commodities (if they are not already). Products and services are highly similar—printers print and computers compute. And if one manufacturer boasts of more “feeds and speeds” today, competitors will catch up tomorrow. Price and performance are just the ante to get into the game.
A version of this article appeared in the July–August 1999 issue of Harvard Business Review.