kannibalisaation

Kannibalisaation is a term used to describe a phenomenon where a company's new product or service reduces the sales of its existing products or services. This often occurs when a company introduces a successor to an existing product or when two products from the same company compete for the same customer base. For example, a company launching a new smartphone model might see a decrease in sales of its older smartphone models as consumers opt for the newer, more advanced version. Similarly, if a company offers both a premium and a budget version of a similar product, the budget version might attract customers who would have otherwise purchased the premium one.

While seemingly counterintuitive, companies sometimes intentionally engage in kannibalisaation. This can be a strategic move to stay ahead of competitors, capture market share with newer technologies, or to manage the product lifecycle by phasing out older, less profitable items. By cannibalizing its own sales, a company can control the transition to new products and prevent competitors from doing so. It also allows for gathering data on customer preferences for newer offerings. However, poor management of kannibalisaation can lead to a net loss in revenue and market position if the new product does not adequately compensate for the decline in sales of the old. Analyzing market trends, customer behavior, and competitive landscapes is crucial for effective kannibalisaation strategies.