Eating Someone's Lunch

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Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

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Updated August 5, 2020

What is Eating Someone's Lunch?

Eating someone's lunch is a business strategy where a company gains market share by aggressively taking it away from a competing company.

How Does Eating Someone's Lunch Work?

Eating someone's lunch can be carried out in a number of ways including:

  • Aggressive pricing strategies
  • Release of new products
  • Implementation of better services
  • Aggressive marketing of products or services

In all these scenarios, the strategy is based on the desire to eat up a larger portion of the market share for a particular product or service.

For example, Company ABC implements an aggressive pricing strategy by lowering prices on its line of retail clothing in an attempt to grab a larger share of the market of its competitor, Company XYZ.

Why Does Eating Someone's Lunch Matter?

Competition is a natural and necessary component of a capitalist market. Eating someone's lunch may lead to, amongst other things, better prices and services for consumers.

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