« Back to Glossary Index

Cannibalization occurs when two products of the same line compete with each other. This phenomenon occurs when the new product performs better than the old one. This is how the new version of the product cannibalizes the old one. The number of sales of the flagship product explodes at the expense of the turnover generated by the old product.

Cannibalization can be triggered voluntarily or not. In any case, caution is required, because if it is not controlled, cannibalization can generate inventory problems.