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 happens when a company defaults on its commercial paper obligations?

    As a practical matter, the Issuing and Paying Agent, or IPA, is responsible for reporting the commercial paper issuer's default ... Read Full Answer >>
  2. How can I calculate compounding interest on a loan in Excel?

    Compound interest is the amount of interest on a principal amount, along with the accumulated interest on the principal from ... Read Full Answer >>
  3. How does a company decide which key performance indicators (KPIs) to use?

    A company's key performance indicators (KPIs) should be considered specific success metrics for that individual company. ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
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. Investing Basics

    What is the Rule of 70?

    The rule of 70 is an easy way to calculate how many years it will take for an investment to double in size.
  3. Investing Basics

    What is Terminal Value?

    The terminal value of an asset is its anticipated value on a certain date in the future.
  4. Options & Futures

    Taking Measure: Gold, Diamonds and... Karats?

    We look at the difference between karats and carats, as well as investment opportunities in gold and diamonds.
  5. Economics

    What is Systematic Sampling?

    Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample.
  6. 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.
  7. Economics

    Explaining PFIs and PPPs

    Public-private partnerships (PPP) and Private Finance Initiative (PFI) are two business relationships between government agencies and private businesses.
  8. 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.
  9. Fundamental Analysis

    Explaining Standard Error

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

    Explaining Tangible Net Worth

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

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center