Is Cannibalization a Bad Thing?

If a new product cannibalizes an existing product, doesn’t that mean it provides better value to your customers? If customers prefer an alternative, there must be good reason. Sometimes we shy away from new opportunities because they’re different and they affect the concepts we’re most familiar with.

Companies that refuse to adopt new ideas because they’re concerned with how they’ll impact their traditional business models or revenue streams are often doing their customers a great disservice. In the publishing industry, for example, publishers that are unwilling to accept the realities of free online content will struggle to make ends meet. While much of what publishers can provide still has great value, how it’s presented and what people are willing to pay will undoubtedly change.

Recognizing how external factors affect the way business will be done going forward is a necessary step in the right direction for companies committed to meeting customer needs.

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