Cannibalization

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What is Cannibalization?

Cannibalization is a marketing term that refers to the decrease in sales (volume, revenue or market share) of an existing product due to the introduction of a new similar product offered by the same company. Also introducing new sales channels, such as the internet (E-Commerce), can cannibalize the existing channel sales, such as direct sales.

It has become a frequently occurring phenomena, due to the current trend of adding more and more variants of products and services for niche markets or special target groups. It is a major factor to consider in multi-channel strategies and product portfolio analysis.

Forum Start a new topic about Cannibalization Write here. Ask a question or explain something. Forum about Cannibalization. Is Cannibalization Always Negative? In marketing and strategy, cannibalization often carries a negative connotation. At first glance, it suggests that a company is undermining its own success—new products eating into the sales of establ... 12   4 comments 🔥 How to Manage the Impact of Cannibalization in E-Commerce As companies expand their digital presence, one of the growing challenges they face is cannibalization — when sales from a new product, platform, or channel reduce the performance of an existing one. ... 3   How to Investigate Cannibalization? How can we analyze cannibalization? I have to compare two travel companies (TUI Travel and Thomas Cook) and analyze the cannibalization. I have to look at the E-commerce part, but what should I look f... 1   2 comments

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Compare also: Bricks and Clicks  |  Profit Center  |  E-Business  |  E-Commerce  |  Disintermediation

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