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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The resulting embryos were allowed to develop in laboratory dishes for several days before the scientists cannibalised them to extract embryonic stem cells.
The police have detained three suspected motorcycle thieves who sold cannibalised parts of stolen machines to an illegal workshop in Taman Rumbi Setia, Alor Gajah over the past six months.
Then every now and then they get completely cannibalised by some much larger galaxy."
But in a final statement before the verdict was announced, Gorobets denied that he had cannibalised his victims, saying he didn't eat the human flesh himself.
Old metal storage units were cannibalised, the shelving extracted to create cupboards with sliding doors, the whole finished with rust-proof paint in a silvery colour.
The seventh aircraft was taken out of service many years ago, has been 'cannibalised' for spare parts and could never be put back in service."