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Cannibalization |
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The negative impact a new product has on the sales performance of
a company's existing, related products.
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In
other words, you are eating your own market :)
For example, say Coca Cola puts out a new product called Coke2. Market
cannibalization is where customers buy Coke2 instead of regular Coke,
although sales are up for the product they are not increasing for
the company overall. Investors always dig deeper, the company will
likely not outright admit this is occurring. |
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Dictionary
