Cannibalisation is the portion of the demand for a new product that comes from the erosion of the demand for (sales of) a current product the firm markets. In other words, it's when customers switch from buying one of your products to buying a new, similar product from your company. Cannibalisation can occur when a company launches a new version of an existing product (e.g., Apple's iPhone 6 cannibalised sales of the iPhone 5), or when it enters a new market with a new product (e.g., Toyota's Prius hybrid cannibalised sales of its gas-powered cars). While cannibalisation is often seen as a negative, it can also be viewed as a sign that a company is succeeding in innovation. After all, if your cannibalising product wasn't better than the original, customers wouldn't switch. Therefore, cannibalisation should be monitored but not necessarily feared.