Corporate Cannibalism

This is one of those things I hadn’t considered until recently. See, I’ve heard a couple different people recently mention companies and how they’re cannibalizing their own products.

For example…

  • Apple releases iPhones that hold songs. So now why buy an iPod, right?
  • Old Spice tells commercial viewers to buy their product directly from such and such a website for a discount. So now why would Walgreens want to carry Old Spice, right?

The idea is that a company releases a product that will compete against one of its own, already established products.

It’s a tough call. Sometimes companies have to create the product that will dominate every other product on the market, including their own. Because otherwise someone else will.¬†Other times, creating that product just splits the decision and weakens both products.

It’s a tough call, but that’s the reason for proper branding and – as Simon Sinek says – for starting with why.