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
and product portfolio analysis.
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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...