In marketing, situation where the sales of a new (introduced as an extension of an established brand) or differently branded product eat into the sales of other products within the same line. If the total sales revenue of that product line increases, then the line extension is justifiable. However the danger of weakening the main brand remains.
Cannibalism is in the Advertising, Marketing, & Sales and Decision Making, Problem Solving, & Strategy subjects.
Cannibalism appears in the definitions of the following terms: parasitic advertising and multi-brand strategy.
Nov 28, 2010
Business Term of the Day: cannibalism
Term of the Day - weak dollar
Dollar that can be exchanged for only a small or decreasing amount of foreign currency. A weak dollar means that the U.S. dollar cannot buy very much of another currency. The strength of the dollar has an impact on imports and exports because goods and services from a foreign nation are usually purchased in the currency of the producing nation. A weak dollar usually leads to high exports and low imports. opposite of strong dollar.
Nov 26, 2010
Texe Marrs
Term of the Day - ROC
Return on Capital. A measure of how effectively a company uses the money (borrowed or owned) invested in its operations. Return on Invested Capital is equal to the following: net operating income after taxes / [total assets minus cash and investments (except in strategic alliances) minus non-interest-bearing liabilities]. If the Return on Invested Capital of a company exceeds its WACC (Weighted Average Cost Of Capital), then the company created value. If the Return on Invested Capital is less than the WACC, then the company destroyed value.
Business Term of the Day: decision analysis
Management technique in which statistical tools such as decision tree analysis, multivariate analysis, and probabilistic forecasting are applied to the mathematical models of real-world problems. The objective of a decision analysis is to discover the most advantageous alternative under the circumstances.
Decision analysis is in the Decision Making, Problem Solving, & Strategy and Statistics, Mathematics, & Analysis subjects.
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