Benefits of cannibalization outweigh the risks

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Cannibalization occurs when a firm's sales of one product (or at one location) diminishes its sales of another of its products (or at another of its locations). This may occur if a newer version of the firm's product, say a video game console, is launched while an earlier version is still selling and might, in fact, still be selling well. Under what circumstances should a firm consider that the benefits of cannibalization outweigh the risks?

Reference no: EM133152769

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