Companies are continually trying to innovate new products to expand their sales and market share. This practice, however, comes at a price since selling a new product could mean losing sales of another product.

1. Explain how a company can balance the practice of cannibalization so they do not continually eliminate one product when a new product is introduced in the market. Use examples to demonstrate the positive and negative aspects of product cannibalization.
2. Since the stages of a product also influence the sales trends, explain how a company can use the product stage to their advantage if they understand the true position of the product in the market.

(15 Points)

For all discussion questions: One main post is required to address the weekly problem. Two subsequent response posts are then required discussing the main posts from your colleagues. The three minimum required posts should be completed on three different days throughout the week. Proper formatting using MLA or APA guidelines should be utilized for all posts. Responses that simply state agreement, opinion, or lack of supporting documentation will not receive full credit as they do not contribute value to the discussion.