DEFINITION of 'Eating Someone's Lunch'

The act of an aggressive competition that results in one company taking portions of another company's market share. Market share is the percentage of an industry or market's total sales that is achieved by one company during a specified time period. A more aggressive company "eats the lunch" of another company when it take some of its competitor's market share. This can be achieved through the release of a better or newer product, aggressive pricing or marketing strategies or other competitive advantages. When these strategies result in one company having a bigger market share for a particular product or service, the company enjoying the larger market share is said to be eating someone's lunch.

BREAKING DOWN 'Eating Someone's Lunch'

Eating someone's lunch generally refers to defeating or outwitting an opponent. In the business world, it describes situations where one company outperforms another and earns a larger market share. Eating someone's lunch is considered a necessary component of a competitive market, and may help bring better pricing and services to consumers as companies compete for larger market shares. A company may eat someone's lunch at one point in time, only to have their own lunch eaten during a subsequent time as competitors fight back for market share.

RELATED TERMS
  1. Free Lunch

    A situation in which a good or service is received at no cost, ...
  2. Market Share

    The percentage of an industry or market's total sales that is ...
  3. Dog Eat Dog

    Intense competition in a market. Dog eat dog competition most ...
  4. Eat Well, Sleep Well

    An adage that, referring to the risk/return trade-off, says that ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. Share Premium Account

    Usually found on the balance sheet, this is the account to which ...
Related Articles
  1. Small Business

    6 Rules For Maximizing Your Business Lunch

    Business lunches can be extremely important networking tools. You can use these tips to impress and make the most out of the functions.
  2. Retirement

    Squeeze A Greenback Out Of Your Latte

    Stick to your budget every day with these 15 simple tips.
  3. Investing

    Lunch With Buffett Auction Ties eBay Record

    When the amounts are tallied, it's going to be one of the most expensive meals in human history. One person has volunteered to pay nearly $3.5 million to have a private lunch with star investor ...
  4. Investing

    Buffalo Wild Wings Guarantees Lunch in 15 Minutes

    Buffalo Wild Wings (NASDAQ: BWLD) may be a top place to go and watch a game, but the lunchtime crowd doesn't have the time to kick back for that long: They need to get in, eat, and get back ...
  5. Personal Finance

    A Day Without Spending, A Lifetime's Worth Of Lessons

    Financial guru Suze Orman once challenged her fans to go a day without spending any money. Here are the lessons learned from this exercise.
  6. Investing

    Why Do Companies Care About Their Stock Prices?

    Read on to learn more about the nature of stocks and the true meaning of ownership.
  7. Personal Finance

    Top 7 Money Saving Tips for Eating Out

    Discover seven money-saving options available to consumers who are looking to partake in the luxury of dining out while cutting down on cost.
  8. Personal Finance

    Save Money: 5 Expenses You Don’t Need

    Everyone likes having extra cash, and saving money every month doesn’t have to mean making big sacrifices in time, effort, or enjoyment. Here are a few ways to save money on five common household ...
  9. Insights

    Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
RELATED FAQS
  1. What strategies do companies employ to increase market share?

    Learn how companies use innovation, customer retention tactics, smart hiring practices and timely acquisitions to increase ... Read Answer >>
  2. How does market share affect a company's stock performance?

    Discover how market share affects a company's performance. Market share is important in cyclical industries and not important ... Read Answer >>
  3. How does it affect a company's credit rating to buy back shares?

    Learn how buying back shares can negatively affect a company's credit rating if the company uses debt to finance a share ... Read Answer >>
  4. How do I determine a particular company's market share?

    Learn what market share is, how to calculate a company's market share, and how to interpret the market share of a company ... Read Answer >>
  5. After an initial public offering, does a company profit from increases in its share ...

    The short answer is "no". To understand why, recall that the stock market is actually comprised of two markets - a primary ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center