Cannibalization Strategy

Cannibalization is the negative impact of a company’s new product on the sales performance of its existing and related products. It refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer. 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 competition is not included in market cannibalization.