Final SWOT, Cannibalization Effects and Price maintenance

Final SWOT, Cannibalization Effects and Price maintenance

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Organizational Strengths and Weaknesses

Organizational strengths and weaknesses can relate to employees, market image, technology in use, distribution system, market size, and financial resources (cash on hand, infrastructure). Using an organization of your choice, discuss what you see as its strengths and weaknesses. How should it consider these when conducting marketing strategy planning?

Organization choice: Verizon or At&T

Cannibalization Effects

Cannibalization occurs when the introduction of a new product to the line does not create new net sales, but rather robs sales from existing products in the line. Mention an organization that you think has experienced cannibalism among its products or brands, and explain what it has done or might do to avoid this in the future. Organization choice: Coca-Cola Company

Below is an example/additional information provided by Professor

The term cannibalization is sometimes used too liberally. Personally, I think a requirement for it is that both the old (victim) product and new (cannibalizer) product are on the market. For example, less than a year ago, I swapped in my old cell phone for one that I was told is "7 generations superior" (I had it about 4 years). While this is natural technological evolution, I wouldn’t call it cannibalization, as the old phone is no longer available. If Dunkin Donuts introduces an exotic new style of coffee and its regular coffee drinkers switch from what they had been drinking to the new type, that’s cannibalization, pure and simple. However, DD knows that in order to stay competitive, it can’t wait for competitors to do this, so it must cannibalize itself to remain competitive.

 

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