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Mitch Wagner
Mitch Wagner
1/27/2016 1:14:10 PM
User Rank
Gold
Re: Self-cannibalization
Absolutely yes. It's difficult to be agile and innovative during an economic downturn. 

And yet that's when it's most important. It's during the downturn that the winners of the next upturn prepare their game. 

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mpouraryan
mpouraryan
1/27/2016 4:53:26 AM
User Rank
Platinum
Re: Temporary distinction
What is clear is that as long as it s strategic--Sun Microsystems, back in the day, was quite successful before it lost its' way before Oracle took it out of its' misery.  

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mpouraryan
mpouraryan
1/27/2016 4:52:15 AM
User Rank
Platinum
Re: Self-cannibalization
I would humbly suggest, though, that it has to be done in a calculated strategic way for maximum benefit.  Since Apple was mentioned, Jobs in my view understood the markets he wanted to crack and set out to do it--and in the end changed the World.    Not sure if this is possible in Russia in its' present predicament.

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mpouraryan
mpouraryan
1/27/2016 4:50:58 AM
User Rank
Platinum
Re: Self-cannibalization
This is especially more challenging in Russia especially as it is dealing with a severe recession as a result of the sanctions and Oil Prices.   How agile and adaptive they are will be quite interesting to watch and be witness to.

 

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batye
batye
1/14/2016 3:44:43 AM
User Rank
Platinum
Re: Temporary distinction
@Ariella Same on my end, interesting to know... 

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batye
batye
1/14/2016 3:43:46 AM
User Rank
Platinum
Re: Self-cannibalization
@WestCoas08791 I would say this days it could be only right way to do it...

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Ariella
Ariella
1/5/2016 1:59:01 PM
User Rank
Author
Re: Temporary distinction
Thanks for clarifying @inkstainedwretch. I see that what you refer to as cannibalization then might be viewed as a shift in strategy to respond to a shift in the market. Had a comany insisted on sticking with film when the world was moving on to digital out of fear of competing with its own products, it would have been left in the dust. The only exception I can think of is someting that is very niche and wants to stay very niche, say a type of film that professional photographers would stick with. But if you're aiming for the mass market, you would have to cannibalize at times, just as the buggy whip manufacturers had to shift to auto parts to stay in business.

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inkstainedwretch
inkstainedwretch
1/5/2016 1:13:02 PM
User Rank
Gold
Re: Temporary distinction
I define "cannibalization" as a company creating a new product or service that eats into sales of its existing product(s) or service(s). Kodak was a pioneer in digital photography; had it continued to sell digital photographic products and services, that would have eaten into sales of its film-based products. That would have been cannibalization. Cutting the prices of its film-based products to compete with digital photography? Not cannibalization. I acknowledge that other people might define it all otherwise.   -- Brian Santo

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Ariella
Ariella
1/5/2016 1:00:11 PM
User Rank
Author
Re: Temporary distinction
< Responding to a competitive business model isn't technically cannibalization either. It's just business> That's understandable @inkstainedwretch when you have to rethink your strategy to remain competitive. I should think it only really becomes "cannibalization" when you slash prices to an unsustainable point, so you are forced to cut things that shouldn't be cut. Do you have a different definition of cannibalization?

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inkstainedwretch
inkstainedwretch
12/30/2015 2:52:33 PM
User Rank
Gold
Temporary distinction
There's OTT technology and there's OTT services. OTT technology is simply broadband IP, and everyone is going that way anyway; it borders on nonsense to talk about cannibalization in that context. The issue is OTT services, or the mix of services and the pricing -- in short, business models. Responding to a competitive business model isn't technically cannibalization either. It's just business. -- Brian Santo

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