Definition of corporate cannibalism

A strategy in which a company brings a new product into a market where it already has an established product line-up and therefore causes declining sales of the incumbent product or, in some cases, obsolescence.

A company may do this because the new product may sell better than the previous one or because it wants to increase its market share and believes the move will put its competitors at a disadvantage.

Corporate cannibalism is a situation where a company is, more or less, competing with itself. However, it is pervasive in consumer electronics, particularly mobile phones and other devices where advances in technology are swift.

Apple Inc is perhaps the most famous example of a corporate cannibal given that releases of its new mobile phones, tablets and laptop computers occur while the existing lineup still sells well.  This is usually planned in order to beat competitors and create sustained interest in its products. [1]

FT Articles & Analysis

No articles are associated with this term

Related Terms