Product Cannibalization: Eat Your Own Lunch
Product cannibalization means competing with yourself before someone else does. Apple famously did this with the iPhone, knowing it would kill the iPod. The footgun is accidentally shrinking your total market share instead of growing it with new offerings.
Product cannibalization is the strategy of launching a new product that competes with your existing ones—eating your own lunch before a competitor does. Apple's iPhone knowingly made the iPod obsolete, while Coca-Cola's Diet Coke and Coke Zero targeted different preferences within the same base to expand its total reach. The key is strategic growth; the footgun is misjudging the market and simply shuffling revenue from one product to another without any net gain, or worse, a net loss.
Read the original → prodpad.com
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