What is cannibalization in SAP IS-R-DM - Demand Management?

SAP Term: cannibalization

• Component: IS-R-DM

• Component Name: Demand Management

• Description: A reduction in the unit sales, revenue, or market share of one product as a result of the introduction, promotion, or price drop of a a substitute product in the same location.

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• Key Concepts: 
  Cannibalization is a term used in SAP IS-R-DM Demand Management to describe the process of one product or service taking away sales from another product or service within the same company. This can occur when a company introduces a new product or service that is similar to an existing one, and customers switch to the new offering instead of buying the original. 
  
  How to use it: 
  In SAP IS-R-DM Demand Management, cannibalization can be used to measure the impact of introducing a new product or service on an existing one. Companies can use this information to determine whether the new offering is worth the potential loss in sales of the original product or service. 
  
  Tips & Tricks: 
  When introducing a new product or service, it is important to consider how it may affect existing offerings. Companies should use cannibalization as a tool to measure the potential impact of introducing a new product or service on an existing one. 
  
  Related Information: 
  Cannibalization is closely related to market share, which measures how much of a particular market a company holds. Companies should consider both cannibalization and market share when introducing new products or services.