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cannibalization
(redirected from cannibalising)

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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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Therefore, a key question facing strategy executives is whether a completely new category might exist, which also lends itself to music-based personalisation and which could be pursued without cannibalising existing ringtone revenue streams?
SAN FRANCISCO & LONDON -- As mobile operators across Europe and Asia look to deploy customised (operator owned and branded) mobile IM services by the end of 2006, a new visiongain report warns that incorrect pricing seriously throws open the possibility of MIM cannibalising SMS service revenues.
The second largest class, human insulin/analogues, has also shown strong growth, at 14% per year to just over $4bn in 2002, cannibalising sales of animal insulins, the market for which contracted by almost a quarter each year, on a CAGR basis.
 
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