What is Cannibalization? Advantages and disadvantages, FAQs

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What is Cannibalization?

Cannibalization is a term used to describe the instance when the products of the same company compete with each other in the same market. 

Now, at first impression, this comes off as a disadvantage because the company is losing out on the market share for its own product and the resources spent on both the products are not creating an impact up to their potential. 

On the brighter side, cannibalization creates an image of the diversity of products along with the choices provided. Moreover, internal competition for the same customers is better than external customers because the profits are either way coming in the company. 

FAQs

Q: What is Cannibalization?

A: Cannibalization is a term used to describe the instance when the products of the same company compete with each other in the same market. 

Q: What is the advantage of cannibalization? 

A: Cannibalization creates an image of the diversity of products along with the choices provided for the customers. Moreover, internal competition for the same customers is better than external customers because the profits are either way coming in the company

Q: What is the disadvantage of cannibalization? 

A: The disadvantages of cannibalization is that the company is losing out on the market share of its own product and the resources spent on both the products are not creating an impact up to their potential. 

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