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. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it ...
  4. Comparative Advantage

    The ability of a firm or individual to produce goods and/or services ...
  5. First Mover

    A form of competitive advantage that a company earns by being ...
  6. Dog Eat Dog

    Intense competition in a market. Dog eat dog competition most ...
RELATED FAQS
  1. What is an available seat mile in the airline industry?

    One airline seat available for sale and flown one mile equals one available seat mile (ASM) in the airline industry. A primary ... Read Full Answer >>
  2. Under what circumstances is short selling advisable?

    The practice of selling a stock short only makes sense when the investor anticipates the share price will subsequently drop. ... Read Full Answer >>
  3. What are the differences between a change in accounting principle and a change in ...

    One area where the Fair Accounting Standards Board, the FASB, and the International Accounting Standards Board, the IASB, ... Read Full Answer >>
  4. What are the differences between gross profit and net income?

    When preparing either an income statement or an income tax return for a business, accountants provide calculations for both ... Read Full Answer >>
  5. Type Of Return

    A client asks an IA to calculate what rate of return must be earned to grow $10,000 to $25,000 in five years. The rate of ... Read Full Answer >>
Related Articles
  1. Investing Basics

    The Advantages Of Investing In Aggressive Companies

    Often the most attractive companies are also a little fierce - learn how to spot healthy corporate aggression.
  2. Fundamental Analysis

    Explaining Expected Return

    The expected return is a tool used to determine whether or not an investment has a positive or negative average net outcome.
  3. Economics

    Explaining PFIs and PPPs

    Public-private partnerships (PPP) and Private Finance Initiative (PFI) are two business relationships between government agencies and private businesses.
  4. Economics

    How to Calculate Trailing 12 Months Income

    Trailing 12 months refers to the most recently completed one-year period of a company’s financial performance.
  5. Fundamental Analysis

    Explaining Standard Error

    Standard error is a statistical term that measures the accuracy with which a sample represents a population.
  6. Economics

    Explaining Tangible Net Worth

    Tangible net worth is determined by taking total assets, then subtracting liabilities and intangible assets.
  7. Stock Analysis

    What is the Price-to-Sales Ratio?

    The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.
  8. Budgeting

    5 Smart Tips For Raising Financially Literate Kids

    Help your children learn to be financially literate with these strategies. Financial savvy begins with what they learn from their parents.
  9. Investing

    What are Direct Costs?

    Direct costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. These costs may ...
  10. Investing

    What's a Hurdle Rate?

    Hurdle rate has two meanings. In the business world, a business typically makes a decision on a capital project based on the net present value approach. To determine the net present value, the ...

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center