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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

cannibalization

a situation where a new brand gains sales at the expense of another of the company's brands.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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"There is cannibalisation clearly of the Mac by the iPad, but we continue to believe there is much more cannibalisation of Windows PCs by the iPad and there's many more of them to cannibalise.
Analysts don't know how significant iPad cannibalisation is, either, although -- like Cook -- they suspect it's happening.
Cannibalisation can and will cause overall usage shifts to a more Universal Client (N Users:N Devices) with more access in virtual cafes, remote offices, and or hotelling scenarios.
Deferred replacement spending in recent years means potential for market to bounce back as economy improves, but cannibalisation of retail PC demand by increasingly powerful smartphones adds uncertainty.
Moves will include the tightening up of security on the registration and licensing of vehicles to end the cannibalisation of cars when two wrecks are welded together.
Since its merge of distribution network with Haitai Confectionery & Foods in 2009, the company has adjusted its product lines to avoid cannibalisation. For instance, both companies have similar products called Youngyanggaeng, which may face cannibalisation by confusing consumers due to the same name.
Booming tablet sales are driving growth while desktop and notebook sales are under continuing pressure from cannibalisation.
The US retail hardware market fared better than other developed markets in 2013 as sales of tablets boomed while the squeeze on desktop and notebook sales was less pronounced, particularly compared with Europe, where economic crisis has added to the detrimental impact of tablet cannibalisation. Overall tablet sales continue to drive the hardware market, with the latest data from Pew Research Centre showing penetration reached 34% of the adult population in May 2013, up from just 14% a year earlier.
A vendor source with direct knowledge of the matter said, 'The Sail hatch and notch are in the same segment as the Aveo so the company expects some degree of cannibalisation if the two coexist.'
While it has already converted 102 of the stores to the JD brand and offloaded 15 branches, it has suffered from so-called cannibalisation with JD Sports and First Sport stores competing for business in close proximity in around 60 of the original locations.
With the launch of the Grand i10, HMIL discontinued a variant of the existing i10 which was powered by a 1.2 litre petrol engine to avoid cannibalisation.
The decline in desktop and notebook shipments, in part the result of cannibalisation of sales by low-cost tablets, is limiting growth of market value.