I used to pick Southwest Airlines, because the service and reputation were good. But when I fly out of Seattle next week I have no idea which airline I’m flying on. And actually I don’t even really care. I’m just happy to have found the perfect flight times for my trip. My coworker is flying the week after me and while she knows the airline she’s flying, she has no idea who they are or what to expect—but she does know they had the cheapest price. With surveys indicating that this summer flying was a uniformly miserable experience, who is standing out for their approach?

Air travel is becoming more and more commoditized. New airlines are taking the price game even further—for example, on Skybus, they offer a few $10 tickets on every flight, but if you make a connection you have to collect your baggage and re-check it in for the next leg of your flight, making sure your layover is at least 2 hours long to accomplish this. It would seem their business strategy is to become a commodity competing on price alone. (Does price create a lasting differentiator? Think: Wal-Mart.)

So starting with airlines, what are some other industries that have become commoditized? What do you think is an industry that has ceded its power to differentiate among its members?

- Krista Joy Johnson