Eating Someone's Lunch

AAA

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.

INVESTOPEDIA EXPLAINS '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. Absolute Advantage

    The ability of a country, individual, company or region to produce ...
  2. Judo Business Strategy

    A plan for managing a company by using speed and agility to mitigate ...
  3. Comparative Advantage

    The ability of a firm or individual to produce goods and/or services ...
  4. Dog Eat Dog

    Intense competition in a market. Dog eat dog competition most ...
  5. First Mover

    A form of competitive advantage that a company earns by being ...
  6. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it ...
Related Articles
  1. The Advantages Of Investing In Aggressive ...
    Investing Basics

    The Advantages Of Investing In Aggressive ...

  2. What are the differences between gross ...
    Fundamental Analysis

    What are the differences between gross ...

  3. 10 Common Financial Terms Every Newbie ...
    Investing Basics

    10 Common Financial Terms Every Newbie ...

  4. ChartAdvisor for Aug. 8, 2014
    Chart Advisor

    ChartAdvisor for Aug. 8, 2014

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center