competency (noun, com-pe-ten-cy, \ ˈkɑːmpətənsi \) convergence (noun, con-ver-gence, \ kənˈvɜːrdʒəns \)
Definition: is a market situation, in which the competition between several suppliers of a product or service is so severe that their offers become nearly identical to each other. As a result, due to the lack of differentiation between the suppliers, a buyer is unable to make a conscious decision between them, as there’s no benefit of picking one over the other. Such a situation can occur when the price of a product and its characteristics depend on similar conditions for all suppliers, leading to their pricing and promotion tactics being indistinguishable.
In a Sentence:
- Currently, a competency convergence exists in the Wi-Fi router market, as most manufacturers offer the non-distinct models with similar pricing, making a choice between them irrelevant for a customer.
- As we continue to search for ways to lower our price, we’re nearing the point of a competency convergence. Back when we were entering the cereal market, I had no idea that the competition here was so intense.
- The management of Juicy Burgers dreaded the possibility of a competency convergence, as the danger of losing a substantial amount of their profits loomed over their heads.
Synonyms and related words: competency, competency modeling, convergence, competency based pay
