Cannibalization is a term used in product management to describe the scenario where a new product or product line takes sales away from an existing product or product line. This can occur when the new product is similar to the existing product or when the new product is positioned as an upgrade to the existing product.
“Intentional Cannibalization” might sound a bit scary, but it’s actually a business term. Imagine you have a popular product that’s selling really well. But you’ve also created a new product that’s even better, and you think people will love it. There’s a catch, though: if people start buying the new product, they might stop buying the old one.
Now, you could keep the old product and not release the new one to avoid losing those sales. But sometimes, a company decides to promote the new product anyway, even if it means the old product’s sales go down. They do this because they believe that in the long run, the new product will be more successful and might even attract new customers. This deliberate choice to reduce sales of an old product by introducing a new one is often called “Intentional Cannibalization.”
It’s like giving up a small piece of cake now for a bigger and tastier slice later!