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Cannibalisation

Cannibalisation is the process of one product replacing another within the same company. It can occur when a new product is introduced that is designed to compete with an existing product or when a current product is modified to such an extent that it effectively becomes a new product. In either case, cannibalisation can harm the sales and profitability of the affected products. So, companies must weigh the risks and benefits of introducing new products or making significant changes to existing ones. When done correctly, cannibalisation can be a powerful tool for driving growth and market share. Yet, it can also lead to the decline of once-popular products. As such, companies must proceed with caution when considering utilising this strategy.

Cannibalisation is the process of one product replacing another within the same company.

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