Explain how cannibalization and multibranding are related
What will be an ideal response?
Organizations often decide to extend their product portfolios by adding more brands, or multibranding; one result of multibranding may be cannibalization, which occurs when the company loses sales of an existing product to a new item the company has introduced in a product portfolio.
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Brands in highly-differentiated product classes require heavy advertising to establish a unique image
Indicate whether the statement is true or false
Joshua is a shareholder in Great Lakes Limited, a company that manufactures sporting equipment
At the company's last annual general meeting, Joshua and the other shareholders were informed about some of the company's plans to expand its operations in a new product line. Armed with this information, Joshua started his own company which manufactured and sold the same products that great Lakes had planned to commence manufacturing. Which of the following statements is correct? A) By starting his own company on the basis of information learnt at the annual general meeting, Joshua has breached a fiduciary duty owed to Great Lakes. B) Joshua has not breached any duty owed to Great Lakes. C) Great Lakes can obtain an injunction stopping Joshua from further acting on the information he learnt in the meeting. D) By starting his own company in order to compete with Great Lakes, Joshua has breached a fiduciary duty owed to Great Lakes. E) Great Lakes can obtain damages against Joshua for breach of a duty owed to it