What is corporate cannibalism?

Corporate cannalism occurs when one company releases a new product or service to a market in which it has already created a similar product or service. Basically, it makes one offer that the company has a direct form of competition with a different offer, sometimes even makes the company its own biggest competitor. Although it may seem as a defective idea, it has become more common and necessary, because advances in technology cause older pieces of hardware seem to be outdated. The company can continue to produce one product that is popular and risks that a competitor will release an advanced product that replaces it, or engage in corporate cannibalism and release the advanced product itself. There are some businesses that are relatively immune or are likely to deal with this problem, which usually includes those that provide Ervice SSPs than the product. However, there are a number of opportunities that may require the company to engage in one forWe corporate cannibalism or second. Rather, the evocative name of this practice comes from the idea that society basically "eats" its own place on the market to introduce something new.

A simple example of corporate cannibalism at work can be seen on the practices of smartphone manufacturers at the beginning of the 21st century. Intelligent mobile phones have quickly become a highly competitive market where more manufacturers released new models almost a year. One manufacturer could introduce a new phone model at the beginning of the year and within six months a competitor could release a model with similar or slightly better options. In order to compete with the product -relaxed product, this company can often release another model for the next year.

This practice is not cannibalistic, depending on the nature of the market. The smartphone market has created field off -road cannibalism because of the way the older ph phones remainopular. The company that releases a new model for one year will probably have this model in direct competition with the one that released the previous year.

The company probably participated in business cannibalism and potentially its own profits and success. Some potential disadvantages of this practice are the chances that the new product will reduce the sale of the elderly, or that people do not buy a product and instead wait for the "inevitable" upgrade that the company will release. However, this practice remains popular because the alternative could mean the hesitation and release of an excellent competing product by another company.