The concept of the ''commodity magnet'' synthesis the manner in which industry dynamics can create customer value and destroy company value. the key dimensions in the model are: * Price * Cost to serve <<image /static/files/MBI/Module%2011/commoditymagnet.PNG width:600>> * ''I'' When a company successfully innovates and markets a new offering it starts in the top right quadrant. Through its differentiation it can command a higher price. As the company is learning, it's costs of operation are also high. * ''II'' A good way to enjoy pioneering advantages is to introduce the innovation to more customers (1) (a [[Product leadership strategy]]) and becoming the brand leader. * ''III'' As a good market attracts more competition (2) (requiring a [[Customer intimacy strategy]] strategy), choice will be created for customers and prices will be forced down. * ''IV'' When industry participants stop innovating and customers become more knowledgeable (3) (requiring a [[Operational efficiency strategy]]), the customers stops comparing and starts demanding. They now occupy the driver seat and will degrade competition in the industry.