Do you think multi-segment targeting strategy can have disadvantages? What do you think they are?
With any strategy that a company implements there is always a risk that they are taking, and this risk most definitely includes both advantages and disadvantages. I feel that the multi-segment targeting strategy is no exception to this. Tammy had mentioned that she believes cannibalization is the main disadvantage because it will create competition between the company's own products. However, I feel that when company's have competition in-house compared to with other company's it is actually an advantage. This is because when you compete against yourself it will only make the company stronger, due to the fact that the company only wants to produce the best of the best. When a company is able to stand back and see that one product may be better than the other, it gives the company a chance to improve the lesser product and make it equally as good, providing customers with the best products possible. They would have more control over what is being sold into the market, and still make a profit. The only down side I do see however, is if the company were to focus more on one product and less on the other. If the company is able to keep focus on all their products, the company should be successful.
Is there any specific company that cannibalization played a large role in producing their products?
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