A generic framework for analysing product cannibalisation

Sundara Raghavan Srinivasan, Sreeram Ramakrishnan and Scott E. Grasman

International Journal of Business Innovation and Research, 2006, vol. 1, issue 1/2, 92-110

Abstract: This paper contributes a generic framework for analysing product cannibalisation. Although the factors affecting product cannibalisation in mature product portfolios have been well studied, issues regarding the performance of a new product and its impact on an existing product portfolio have not been addressed in the context of cannibalisation. Since it is critical to be able to estimate the impact of a new product on other products in the product portfolio, this paper presents a descriptive model to discuss the issues associated with product cannibalisation, specifically the impact of new product introduction on an existing product portfolio. The product portfolio model and different quantitative measures that can be used to understand the impact of new product introduction are discussed, along with a case study to illustrate the cannibalisation indicators developed in this research. This model can then be used along with quantitative methods in strategic decision-making regarding the introduction of new product/product families.

Keywords: product cannibalisation; brand management; new production forecasting; new product development; NPD; business innovation; product portfolio; new product introduction; product families; strategic decision making. (search for similar items in EconPapers)
Date: 2006
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