cannibalization


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Corporate Cannibalism

An act or strategy in which a company introduces a new product into a market where the same company's products are already well established. A company engaging in corporate cannibalism is effectively competing against itself. There are two main reasons companies do this. First, the company wants to increase its market share and is taking a gamble that introducing the new product will harm other competitors more than the company itself. Secondly, the company may believe that the new product will sell better than the first, or will sell to a different sort of buyer. For example, a company may manufacture cars, and later begin manufacturing trucks. While both products appeal to the same general market (drivers) one may fit an individual's needs better than the other. However, corporate cannibalism often has negative effects: the car manufactures customer base may begin buying trucks instead of cars, resulting in good truck sales, but not increasing the company's market share. There may even be a decrease. It is also called market cannibalization.

cannibalization

a situation where a new brand gains sales at the expense of another of the company's brands.
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Note that for the MRSP computation, cannibalization is turned off since, as explained earlier, cannibalization en route is rare.
Such loyalty is an important consideration that should impact mix decisions, but cannibalization also must be considered in the context of each retailer's specific item mix.
We expect the trend to decay, however, and that some cannibalization will result.
Further, the report also discusses that the one of the key challenges in the market is cannibalization of the medical imaging equipment.
Further, the report also discusses that one of the major challenges in the Global Pay TV market is the cannibalization of the market by various segments.
To avoid uncontrolled brand cannibalization and to maximize the potential of multi-drug portfolios or franchises, biopharmaceutical companies with multiple products in the same therapeutic area must carefully manage their marketing spend and activities for new and legacy products.
But through a combination of cannibalization, smuggling and rebuilding a sprawling network of military industries, the Iraqi army is again strong enough to be capable of enveloping all Iraq in its grasp.
The report, "Best Practices in Expanding a Medical Device Product Portfolio without Cannibalizing an Established Brand," identifies successful strategies and best practices used by managers and executives to minimalize cannibalization.
Participants in the study successfully used a range of positioning strategies to prevent or control cannibalization.
Upgrades include a new dashboard-driven interface, the ability to determine cannibalization by SKU, planogram automation and macro store analysis capabilities.
The unique ticketing system not only assists in filling empty seats and targeting casual fans, but does so without negatively impacting the client's brand or introducing price cannibalization.
A country with pent-up demand for connectivity, Mexico's expected rate of expansion for the telecom market contrasts with prospects for other mature markets in the region, where overall growth has been hampered by cannibalization of services and fixed line disconnections.