Cannibalize Your Markets

Cannibalizing one's market is a realistic principle according to which if you create something better than what you launched before, you must be ready to leave that old fashionned item to enter and do business on new channels. The best and newest must win.

Concretly, you must focus on your new channels and "use existing brands to promote them".

For example, Ernst & Young used a web-based service, "Ernie" , to answer to the customers' questions for 6000 $ per year. It has in some sort cannibalized Ernst & Youngs traditionnal services, because many people have replaced a real consultant by a computer.

But the firm obtained advance on its competitors and found new customers thanks to Ernie. In fact, sacrificing a part of their traditionnal way of working enabled them to cannibalize their market through a kind of auto-cannibalization.

I just want to precise that my vision of market-cannibalizing is very influenced by that aspect of auto-cannibalization. You may have noticed it…

So if you prefer I propose a shorter but healthier definition : "Insert yourself in an existing market, then add new offers and use the "old" brand to promote your new project."

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