Selection of Product's Cannibalization Time in High-tech Service Industry
Ruoyu Lu
Abstract
Ruoyu Lu
Abstract
To remain competitive,high-tech service organizations must perfect their service product constantly,innovation and renew their service product constantly.So,cannibalization becomes a general phenomenon in the innovation process of high-tech service product.After introducing new high-tech service product in the market,it will cannibalize the old service product,and the old service product's sales will decrease in a relative short period.Grasping the effectual cannibalization time will bring about continuous advantage in the competition.This paper reviews the conception of high-tech service industry,introduces the cannibalization phenomenon of high-tech service industry,and then analyzes the influencing factors of cannibalize time in high-tech service industry.At last,through a mathematical model this paper calculates the selection of high-tech service product's cannibalization time.
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To remain competitive,high-tech service organizations must perfect their service product constantly,innovation and renew their service product constantly.So,cannibalization becomes a general phenomenon in the innovation process of high-tech service product.After introducing new high-tech service product in the market,it will cannibalize the old service product,and the old service product's sales will decrease in a relative short period.Grasping the effectual cannibalization time will bring about continuous advantage in the competition.This paper reviews the conception of high-tech service industry,introduces the cannibalization phenomenon of high-tech service industry,and then analyzes the influencing factors of cannibalize time in high-tech service industry.At last,through a mathematical model this paper calculates the selection of high-tech service product's cannibalization time.
Key concepts: Cannibalization, Service product management, Service (business), Product (mathematics), Business, Marketing, Competition (biology), Industrial organization