100 GREAT BUSINESS IDEAS • 45feel that people wanting a coffee may be prepared to get it from
anywhere). It also works when people want, for whatever reason,
to keep up to date—for example, with the latest technological
developments.
In practice
- Judge market conditions in order to decide precisely when to
cannibalize a particular product. Developing a product often
takes time and money—if the existing product is highly profi table
and not at risk from competitors, postpone the introduction of a
new offering to a time when it is necessary or desirable. - Cannibalize when it is anticipated that a competitor will introduce
a potentially popular new product. - When sales are stagnating, cannibalizing your older products
with more cutting-edge offerings can radically stimulate overall
sales. - Do not be afraid of competing with yourself. Although it may
se em d au nt i n g at fi rst to risk cutting off the market for your older
products, it should be recognized as a positive way to handle the
cut-throat, dynamic nature of modern business. Also it will force
you to innovate and overcome complacency.