Cannibalization Strategy

The detrimental effect of a company’s new product on the market success of its current and similar goods is cannibalization. This applies to a decline in the number of sales, sales revenue, or market share of one product as a result of the launch by the same manufacturer of a new product. It is also referred to as corporate cannibalism and only arises to a self-induced decline in sales, meaning the loss of market share arising from the competition is not included in market cannibalization.