Corporate Cannibalism

AAA

DEFINITION of 'Corporate Cannibalism'

An act of self-infringement upon market share by corporations through the issuance of new products.

Also known as "market cannibalization."

INVESTOPEDIA EXPLAINS 'Corporate Cannibalism'

Corporate cannibalism occurs when companies introduce new products into a market where these products are already established. In effect, the new products are competing against their own incumbent products.

VIDEO

Loading the player...
RELATED TERMS
  1. Graveyard Market

    A prolonged bear market where existing investors want to get ...
  2. Zombies

    Companies that continue to operate even though they are insolvent ...
  3. Jekyll and Hyde

    1. A slang term referring to the strengths and weaknesses of ...
  4. Eat Your Own Dog Food

    A colloquialism that describes a company using its own products ...
  5. Incumbent

    An individual that is responsible for a specific office within ...
  6. Market Cannibalization

    The negative impact of a company's new product on the sales performance ...
RELATED FAQS
  1. What is market cannibalization?

    Market cannibalism is defined as the negative impact a company's new product has on the sales performance of existing products. ... Read Full Answer >>
  2. Why is product differentiation important in today's financial climate?

    Product differentiation is essential in today's financial climate. It allows the seller to contrast its own product with ... Read Full Answer >>
  3. How can consumer durables act as economic indicators?

    Consumer durables act as economic indicators because they signal how confident consumers are feeling about their own situations ... Read Full Answer >>
  4. What are the differences between product bundling and product lines?

    The difference between product bundling and product lines is a product line is a group of related products manufactured by ... Read Full Answer >>
  5. How can bartering result in a more optimal allocation of resources?

    Bartering can result in a more optimal allocation of resources by exchanging goods in quantities representing similar values. ... Read Full Answer >>
  6. Are there leveraged ETFs that follow the food and beverage sector?

    There are not currently any leveraged exchange-traded funds, or ETFs, that directly track only the food and beverage sector; ... Read Full Answer >>
Related Articles
  1. Options & Futures

    Haunting Wall Street: The Halloween Terminology Of Investing

    Beware of zombies and Jekyll and Hyde companies! Read about the spooky terms circulating Wall Street.
  2. Investing Basics

    Understanding Related-Party Transactions

    In business, a related-party transaction refers to a transaction where parties on both sides have a common interest or relationship.
  3. Economics

    Understanding Organizational Behavior

    Organizational behavior is the study of how humans interact in group environments.
  4. Stock Analysis

    Whole Foods: How Will Shares React to Price Probe?

    Why it's important to look beyond the recent headlines about Whole Foods Market and accusations of pricing problems in New York.
  5. Economics

    What are Deliverables?

    Deliverables is a project management term describing an object or function that must be provided or completed by a certain due date.
  6. Stock Analysis

    Are These America's 5 Best CEOs?

    Do great leaders lead to great investment opportunities? Here's a few to consider.
  7. Stock Analysis

    The CVS Target Deal: A Healthy Union?

    The CVS Health and Target deal should be a win for both. Here's an analysis with a twist.
  8. Stock Analysis

    Top 6 Most Profitable Clothing Retailers

    If you’ve visited any mall in America recently, you’ve likely stepped into one, or all, of these clothing companies' shops. These stores can outfit a person for every occasion imaginable.
  9. Professionals

    What Does Corporate Finance Do?

    Corporate finance is the subset of finance that involves how corporations use leverage to fund their operations and capital purchases.
  10. Stock Analysis

    Are These 5 Retailers in Trouble?

    The retail environment is a tough one and some companies are doing better than others.

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!