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right Market cannibalization, market cannibalism, or corporate cannibalism is the practice of slashing the price of a product or introducing a new product into a market of established product categories. If a company is practising market cannibalization, it is seen to be eating its own market and in so doing, hoping to get a bigger share of it. Concretely, it refers to the principle of a newly introduced product B eating up the market shares of an already established product A, both usually coming from the same company. In this case, both products belong to the same category of products. This occurrence can have either a positive or negative impact on the company’s bottom line, can be accidental or deliberate, in which case it is commonly called cannibalisation strategy. An interesting example is one involving a company achieving lower productions costs for a product produced in a socially evolved country than for the same product produced in a socially weak country. In this case lower production costs are easily achieved by virtue of to lower wages and social costs. This type of market and corporate cannibalism is one factor that makes it hard today in Europe for example to find any computer not produced in China. At the same time companies like Foxconn achieved not only low production costs, but also made it possible for innovative products to get on the market. == Market cannibalism process == A company has a product A which is well established within its market. The same company decides to market a product B, which happens to be somewhat similar to product A, therefore both belonging to the same market, attracting similar clients. This leads to both products being forced to share the market, reducing the market share of product A, as part of it is eaten up by product B. Suppose that pet-food manufacturers A, B and C offer one line of tinned cat food each, and that the customers cannot really distinguish between them, thereby giving them 33.33% share of the market, each. Suppose that manufacturer C then launches a new labelling of cat food called D. On the face of it, it cuts the market share of product C from 33.33% to 25%, but in reality the manufacturer of C now has 50% of the market share, as opposed to 25% each for its rival manufacturers. This example shows the complexity of the subject and the relationship of market or corporate cannibalism with market evolution. 抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)』 ■ウィキペディアで「Market cannibalism」の詳細全文を読む スポンサード リンク
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