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A company can balance the practice of cannibalization so they don't continually eliminate one product when a new product is introduced in the market. One example is that technology is something that all the sectors be it any sector and that when new products release it changes the price of the old product and it moves toward mature stage then it declines. That happens to each and every product that once a new and better vision of the old product a new one comes, the price for the old ones goes down as well as the product. By making a new target segment, if a company designs new product to cater demand of a new market segment then the price of the old one will not be hamper.

The stages of a product also influence the sales trends, and a company can use the product stage to their advantage if they understand the true position of the product in the market. By reducing the price of old product is a way to tackle cannibalization all companies do this . companies do it so the customers can buy the new product and the old one as well. The positive thing about the new product is new technology, new target segment that is new opportunity for company, one step ahead and up to date trend followed by the company. However, the cons of the new product is the loss of sale of old product, the old product looks outdated, and customer get less benefits at low price and it prefer spending less.

yes the new product will make you a great profit and all, but you will loss the old product its like you never sold the product. People look at the new product as in something that they must have, which its normal but for the company, after they release they new product, not many people buy it another and it just stays there.