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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Partnering with MNOs and carriers at this stage, gives the ability to serve the market which has not been catered to by the carrier or network operator and also eliminates the risk of cannibalizing the carrier's market or entering into strong head-on competition with experienced wireless service providers.
The challenge for marketers is to understand how to leverage the consumer's desire for entertainment alternatives, while not cannibalizing their core business," said Anita Frazier, NPD entertainment industry analyst.
The 'affinity MVNO model' is most optimal for most emerging markets; it extends the reach of the network without fully cannibalizing existing subscriber bases.
These colorful WBTV 50th Anniversary displays will enable retailers with limited space to merchandise large quantities of TV on DVD titles without cannibalizing other DVD segments.
SOC unit sales are cannibalizing the consumption volume of other ICs.
A key finding is that consumers' increased use of Online Services has caused traditional media to decline in usage(2); however, Internet Yellow Pages is not cannibalizing print Yellow Pages, as 85 percent of Internet Yellow Pages users continue to also use the print versions.
Far from the concern of the web cannibalizing stores, we are using the Internet to measurably increase store sales while also lifting Internet sales.
Gordon, Chairman and Chief Executive Officer, stated, "This relationship enables the Company to capitalize off its deep market presence throughout California, capturing a segment of the market the Company has otherwise been unable to serve, while not cannibalizing its own core, adjustable-rate loan originations.
Many of Jasomi's revenue-bearing carrier deployments over the last 3 months have largely been with newer providers serving identifiable niche markets, who are quickly able to embrace VoIP's service creation economies without worrying about cannibalizing existing revenue streams.
Meridian will drive same-store sales growth, leverage our current infrastructure and yield future incremental profitability without cannibalizing our existing brands.