![]() ![]() ![]() ![]() The new watch becomes a hit among buyers, and the company sees a significant increase in its sales volume. In an attempt to increase its customer base and subsequent revenues, ABC decides to manufacture another line of products – belt fob watches. Failing to increase the company’s market base results in corporate cannibalism.įor illustration purposes, consider Company ABC, which is known for making high-end wristwatches. Sometimes, the release of the new product into the market attracts a large proportion of its current customer base. Unfortunately, things don’t always go as planned. When a company manufactures a new product or introduces a new service, the goal is to attract a few of their existing customers and a large number of new customers. Market cannibalism is also known as corporate cannibalism. Due to cannibalization, some companies opt not to release their new products because they don’t want the market share of their existing products to decline. ![]() When cannibalization occurs, the business experiences losses not just in sales volume but also in revenue and market share. Market cannibalization refers to a phenomenon that happens when there’s a decreased demand for a company’s original product in favor of its new product. Updated DecemWhat is Market Cannibalization? ![]()
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