Cannibalization

Contents
  • What is cannibalization
Join 6000+ product leaders
Sign up for our newsletter & get the best product tips straight to your inbox

What is cannibalization

💬

Definition of cannibalization

Cannibalization is when a company has several products that compete with one another within the same market.

This is naturally seen as disadvantageous, as a company will not only eat away at its market share for its own products but also on the total resources it has available for each of those product teams.

Get our Mastering Prioritization eBook

Learn how to prioritize by making it a simple process, to build products that stand out. Learn more about how to source insight, choose the right prioritization framework and much more.

Get the eBook

An advantage, however, can be to give the appearance of variety and choice in markets that are otherwise dominated by just a couple of companies. Some businesses also see it as an advantage to compete internally for the same customers, rather than with external competitors.

General FAQ

What is cannibalization in marketing?
Cannibalization in marketing refers to a reduction in traffic, engagement or sales due to the introduction of multiple features, CTAs or products at the same time.
What is cannibalization in product management?
In product management, cannibalization refers to when two different products or features of the same company compete with one other. For example, if a phone manufacturer releases multiple phone models in the same price group and with similar performance cannibalization may occur.
How to calculate cannibalization rate?
You can calculate the cannibalization rate by dividing the lost sales of the existing product due to the sales achieved for the new product.

Building better products
starts here

Join thousands of product managers and makers who already enjoy our newsletter. Get free tips and resources delivered directly to your inbox.
Top rated
on major review platforms
airfocus is where teams build great products. Welcome home 💙
Company
All rights reserved. contact@airfocus.com
ENDE