It seems to me that if your main product lines are seeing falling sales, and therefore, profits, because that R&D, marketing and start-up costs remain about the same whether you’re selling 50,000 units of a model a year, or 500,000, that you would be very happy to canabilize those sales in favor of product lines that are increasing in sales, or have the potential to increase in sales.
Too many companies are so afraid of the unknown that they would rather do nothing until they sink beneath the waves than risk doing something to decrease their current product sales.
When Steve Jobs was asked if he was afraid that the newly introduced iPhone would canabilize the record iPod sales Apple was having, his response was:
I’d rather we canabilize our sales than another company do it. That was paraphrased, which is why I didn’t put into quotes. But you get the idea.
Too many companies are so afraid of the unknown that they would rather do nothing until they sink beneath the waves than risk doing something to decrease their current product sales.
When Steve Jobs was asked if he was afraid that the newly introduced iPhone would canabilize the record iPod sales Apple was having, his response was:
I’d rather we canabilize our sales than another company do it. That was paraphrased, which is why I didn’t put into quotes. But you get the idea.
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