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cannibalization
(redirected from cannibalise)

   Also found in: Dictionary/thesaurus, Encyclopedia, Wikipedia 0.06 sec.

cannibalization

In business, situation where an increase in sales for one branded product results in a decrease in sales for another branded product made by the same company. The cause of cannibalization is usually insufficient product differentiation between the two products. When a training shoe manufacturer introduces to the market a product similar to an existing shoe, with only slight product modification, the new shoe is likely to cannibalize existing sales, as well as to build new sales.



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At the same time, take-up of new messaging services, such as MMS, mobile instant messaging (MIM) and consumer mobile email, has been retarded by factors ranging from usability to operator concerns that new messaging services will only cannibalise existing revenue.
By now it has become clear that 3G is simply going to cannibalise 2G.
However, carriers would do well to focus on differentiating each service, rather than be concerned about how a new service such as mobile instant messaging (MIM) will cannibalise short message service (SMS) revenues.
 
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