Question

Prisly inc. is a multinational company that specializes in manufacturing and selling high-end cars. it launches a new car gwen 2.0 that becomes highly successful in the market because of its cheap price and excellent specifications. however, this leads to a significant decline in the sales of sanders inc.'s other cars. this scenario exemplifies _____.

Answer 1

This scenario exemplify MARKET CANNIBALIZATION.
Market cannibalization is said to occur in a situation in which a new product created by a company impact a negative influence on the sale performance of the company's existing products. It involves the drastic reduction in the demand and sale of the old product by the new product.