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cannibalization

cannibalization

1 8.2
A new product that reduces sales of an older product from the same company
  • noun
  • /ˌkænɪbəlaɪˈzeɪʃən/
  • Jargon
translation icon : canibalización de ventas
  • The initial reaction to Apple's earnings announcement is that growth is slowing and there's concern around cannibalization of the iPad with the iPad Mini.

It's a classic example of the cannibalisation of easy access space.

Examples

  • It's a classic example of the cannibalisation of easy access space.

  • The company's new tablet caused significant cannibalization of sales for its older model, leading to a drop in revenue.

  • How do we think about the cannibalization of the older form factor?

    Blog text (1)
  • We've learned not to worry about cannibalization of our own products.

    Blog text (1)
  • If you add to this the cannibalization of sales from streaming sources that pay too little and illegal file-sharing that pays nothing at all, you can see why the artists have much less money now.

    Blog text (10)
  • Then, when the supercenter concept came about, Kmart's first reaction was to try to build a supercenter that did not take share away from the core Kmart stores (avoid cannibalization).

    Blog text (31)
  • I doubt Apple is worried when this happens in other product lines with multiple tiers (iPhones, laptops, desktops), much like I doubt Toyota considers my buying a Corolla cannibalization of a potential Camry sale.

    Blog text (6)
  • Management is concerned about the cannibalization of their established product lines as they prepare to launch the latest smartphone.

  • They analyzed the cannibalization effect on their profits from the introduction of the new gaming console.

How Damaging

cannibalization
  • Jargon
1 8.2
erosion
29 4.2

Surface Forms

Morphology

cannibalization = cannibalize (semi-transparent) = cannibal + ize + ation

The business sense ('a new product reducing sales of an existing product') is metaphorical and jargon-like; it derives from the idea of 'eating one's own' but is not literal.

Etymology

Cannibalization comes from cannibal, and people use it as a clear image in business: a new product 'eating' the sales or customers of an older product from the same company. So cannibalization in marketing means the new item reduces or takes sales away from the company's existing product.