kannibalisatie

Kannibalisatie, a Dutch term, translates to cannibalization in English. It refers to a phenomenon where a new product or service offered by a company reduces the sales or market share of its existing products or services. This can occur when a company introduces a similar, often improved or lower-cost, alternative to one of its own offerings. Instead of attracting new customers, the new product draws customers away from the company's established products.

This concept is frequently observed in marketing and business strategy. Companies may intentionally engage in kannibalisatie as a strategic move. For instance, they might introduce a newer model of a product to phase out an older, less profitable one, or to preempt competitors from capturing market share with similar innovations. The goal is often to maintain overall market dominance, adapt to changing consumer preferences, or leverage new technologies.

However, kannibalisatie can also be an unintended consequence of product development or marketing campaigns. If not managed carefully, it can lead to a decline in overall revenue and profitability if the sales of the new product do not sufficiently offset the losses from the older ones. Analyzing sales data and customer behavior is crucial for companies to understand and manage the effects of kannibalisatie. This analysis helps in making informed decisions about product lifecycles, pricing strategies, and resource allocation.