Corporate Cannibalism

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Corporate cannibalism or market cannibalization or market cannibalism is the practice of slashing down the price of a product or introducing a new product in the market belonging to established product categories. If a business practices this procedure, it is seen to be eating its own market and by doing so, they hope to get a bigger share of it.

It refers to the principle of a newly introduced product, be named as ‘B’, eating up the market shares of product ‘A’ that is already established, but both coming from the same company. In such situations, both the products belong to the same product category. This can either have a positive impact or negative impact on the company’s bottom line, or could be accidental or deliberate, which is most commonly called as cannibalisation strategy.


A company that has a product named ‘A’ which is well-established in the market, decides to market product ‘B’ which happens to be similar to the first one, therefore both belonging to the same market and attracting similar clients. This pushes both the products to share the market which in turn reduces the market share of product A as a part of it is consumed by product B.

About RCBS: One of the top B (business schools) schools in Kochi, RCBS welcomes you to enhance your career by grabbing your MBA admission in Kochi,Kerala. Most of the top Business schools (b schools) in Kochi, Kerala is located in Ernakulam and among them RCBS, one of the top MBA Colleges in Kochi, Kerala located in Rajagiri Valley, Kakkaknad, Kochi. To know the MBA admission details of RCBS visit the website 

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