Quote:
Originally Posted by kjk
This really does show their entrenched thinking on the issue. Cannibalization isn't in itself a bad thing. (For example, Apple cannibalized sales of its iPhone with the iPod Touch-Steve Jobs responded that if anyone was going to cannibalize Apple, it would be Apple)
Rather than trying to protect an outmoded sales model by trying to stop "cannibalization", they should be finding innovative ways to encourage it on their terms. Because in the end, a sale is a sale. Or isn't, if you alienate your market.
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You're absolutely correct. Smart companies/leaders cannibalize their own business before somebody else does. Another great example going back a few years is HP developing and bringing to market the inkjet printer technology which was in direct competition to their dominant laserjet printers. All you have to do is look at the profit that HP has derived from ink as well as their market position to know how that one came out.