As marketers, we know that cannibalization can be a deliberate strategy for growth.
This happens when a new product intrudes on the existing market for an older product. When this occurs, instead of capturing new customers and retaining current customers, the company fails to increase its market share while almost certainly increasing the costs of production. For example, a company wants to believe that their new product will sell better than the first product, an older product, and so they begin to sell to a different buyer.
Market cannibalization also happen when a company opens a new store near one of its older stores, knowing that they will now cannibalize each other’s sales. However, the new store will also steal market share from nearby competitors, even taking them out of business eventually and that is a negative effect.
So now we see that cannibalization will continue to happen, and more in these modern times, where the big companies will take out the smaller companies.