Market cannibalization can be defined as a loss in sales brought about by an organization's presentation of a new good or service that dislodges one of its own established products.
The cannibalization of existing items results in, no increase in the organization's market share regardless of sales growth for the new item.
Market cannibalization can happen when a new item is of the same category as an existing product, and both offer a similar client base.
Market Cannibalization can likewise happen when a chain store or restaurant outlets lose customers because of another store of a similar brand opening close by.
Likewise alluded to as corporate cannibalism, market cannibalization happens when a new good meddles with the current market for an established good.
By attracting its present customers as opposed to catching new customers, the organization has failed to expand its market share while almost, very likely expanding its expenses of production.
Marketing cannibalization is usually happens unintentionally when the showcasing or advertising effort for new items draws customers farther from an established item.
Therefore, market cannibalization can hurt a organization's primary concern.
Be that as it may, market cannibalization can be an intentional strategy for growth.
A grocery store chain, for instance, may open another store, near one of its established stores, realizing that they will unavoidably cannibalize each other's sales.
Be that as it may, the new store will likewise take market share from nearby competitors, even driving them out of business in the end.