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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To intelligently execute a line extension there are five rules you can consider in order to limit cannibalization and ensure success for both retailer and brand marketer.
In Engro's case, the risk of cannibalization of Olper's is minimal.
In addition, Schoewe said that among the store projects that have been moved to the end of the priority list are those that would have involved a high rate of same-store sales cannibalization in neighboring outlets.
These data only tell half the cannibalization story, however, because they are static in nature, reflecting only the general loyalty inherent to the given SKU.
Marineau acknowledges that there may be cannibalization of Diet Pepsi and Pepsi-Cola, but says added sales from Pepsi One will generate incremental volume for the supplier.
But haunting the parent brand is the spectre of cannibalization.
After streamlining the brands to avoid overlap and cannibalization, the new company will be structured around 10 brands, eight fashion and two company fort, targeting different customers at varied price levels.
How much cannibalization has occurred with the second channel?
The cases could have readily provided a much richer description of the important psychological and organizational forces that prevent the continued cannibalization of current winners.
SunTrust analyst Jake Bartlett lowered his price target on Dave & Buster's to $70, citing the potential negative impact of cannibalization as the company plans to open 5 new locations within 20 miles of "comp-base stores" this year vs.
The text brings together essays and scholarly articles on pricing principles, value-based pricing, the subject of cannibalization in business, long-term returns in pricing strategies, price modeling, value-based pricing investments, using pricing strategies to ensure success in new product launches, break-even strategies, and value-based pricing software applications.