- Market cannibalism
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Market cannibalization, market cannibalism or corporate cannibalism is the practice (on the part of a company) of slashing the price of a product or introducing a new product into a market of established product categories. If a company is practising market cannibalization, it is seen to be eating its own market and in so doing, hoping to get a bigger share of it.
Market cannibalism can be distinguished from corporate cannibalism: in the latter case the corporation is cannibalising its own market share.
A typical example of corporate cannibalism is autocompany producing electrical vehicles. EVs are simpler, cleaner, cheaper (on large scale of production), more economical and easier to build than the ordinar ICE automobiles. Thus a EV will be much more competitive than all other automobiles produced by that company.
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