Definition : Cannibalization zone

A cannibalization zone refers to a geographical area or market segment where a company’s own products or services compete with each other, resulting in a decrease in overall sales and profitability. This phenomenon occurs when a company introduces a new product or service that directly competes with its existing offerings, causing customers to switch from one product to another instead of increasing overall demand. This can lead to a decrease in market share and revenue for the company, as well as confusion and frustration for customers. In order to avoid cannibalization, companies must carefully strategize and differentiate their products to target different customer needs and preferences.

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