Walmart has been opening walmart neighborhood market stores that are one-fifth the size of its supercenters and intended to compete with stores like dollar general. one risk to this effort is multiple choice aggregation cannibalization segmentation differentiation positioning
Cannibalization, meaning that there is a risk that the new smaller Walmart Neighborhood stores will actually compete against regular Walmarts and "cannibalize" their profits
Based on the scenario, one risk to this effort is cannibalization. Cannibalization in business is being defined as a situation in which the new product that are released will likely take the demand and sales of another existing product or the competition of this new product that will result the overall sales to be reduced even if the new product sales are increasing.
When a company sells substitute products or competes with markets in the same niche, it is common for sales of one product to increase over sales of another product sold by the same company, or for consumers to look for one market more than another. This phenomenon is called cannibalization.
Similarly, the phenomenon of cannibalization can occur when the target audience does not perceive product differentiation, or between companies. The greater the degree of substitution between products and between companies, the higher the level of cannibalization between products and between companies is expected.
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