What is Cannibalization?
A definition of Cannibalization
“Cannibalization occurs when a company’s new product eats into the sales of one of its existing products, reducing overall revenue. It is a risk to consider when launching new product lines.”

Business Glossary > What is Cannibalization?
Examples of Cannibalization in a Sentence:
The new energy drink caused cannibalization of our existing soda line.
To reduce cannibalization, we positioned the products for different markets.
Cannibalization is a risk when introducing products that are too similar.
Why is Cannibalization Important in Business?
Understanding cannibalization helps businesses strategize effectively when launching new products. Entrepreneurs must weigh the benefits of new offerings against potential losses in existing ones to ensure long-term profitability and market presence.
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Associated Terms
Here are some associated business terms and synonyms for “Cannibalization”:
- Market Cannibalization
- Product Overlap
- Sales Cannibalization
Apple Cannibalization
Apple faced cannibalization when launching the iPad, as it potentially reduced sales of their MacBooks and iPods. However, Apple successfully managed this risk by creating distinct value propositions, allowing both product lines to flourish.
Final Notes on Cannibalization
When businesses plan to introduce new products, they should consider:
- The degree of overlap with existing products
- Strategies for market differentiation
- The potential to capture new customer segments
These steps can help mitigate the risks of cannibalization and enhance product portfolio balance.
This has been a definition of Cannibalization meaning.
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