Zetovi Corp. is a multinational communications and information technology company. It manufactures smartphones and other cell phone accessories. The company launched a range of tablets in the market, and it becomes an instant hit. The company then experiences a drastic decline in the sales of its smartphones as a large section of its customer base shifts to tablets. Which concept is being illustrated in this scenario?

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Business

20 April, 14:14

Zetovi Corp. is a multinational communications and information technology company. It manufactures smartphones and other cell phone accessories. The company launched a range of tablets in the market, and it becomes an instant hit. The company then experiences a drastic decline in the sales of its smartphones as a large section of its customer base shifts to tablets. Which concept is being illustrated in this scenario?

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Cadence Mann · Answer 1

Cannibalization.

Explanation:

Cannibalization is the loss of sales of an existing product due to competition from a new product in the same line. Is the impact of a company's new product on the sales performance of its existing and related products.

This can negatively affect both the sales volume and market share of the existing product.

Marketers are becoming increasingly savvy about integrating the different marketing channels.