When established companies decide to launch new goods or services that the customers would have for free, in addition to their existing offerings, they cannibalize their own markets.
This method lead the organizations to get into the new channels early enough to be competitive, but only if they apply it in time. For new competitors, it seems better to not apply it because they can leverage freedom of movement and ingenuity.
Nevertheless, we can notice that this phenomenon of cannibalization is especially found on the Internet rather than on traditional channels. We can think about newspapers’ websites which offer to the users free articles that they can read (NY Times, Herald Tribune,
You can see example of the risk of cannibalization on viamichelin . You can print the map of your travel, so the risk is that people don't buy maps anymore... However, this kind of model can be compared to a real service, which ensure a stronger fidelity from the customer to the brand.
Tags : market cannibalize
Pages ayant pour tag : cannibalize
- cannibalize : Cannibalize your markets
