Market Cannibalization

Why are upsells key in business? Because selling more, different things is better for a company than selling upgraded versions of old things. Sure, buying a newer microwave that doesn’t burn your popcorn in 10 seconds is great for you, the consumer, but that’s market cannibalization for the company making the microwaves (maybe they should focus on making blenders, too...if they want to grow, that is).

Market cannibalization is when a company cannibalizes itself, making new products or services that replace old ones that they made. No wonder Apple isn’t sticking to the iPhone biz...they don’t just want you to keep upgrading your phone. They want you to upgrade your phone and get a phone bracelet (Apple watch) and a Macbook.