Eating Someone's Lunch
What it is:
How it works/Example:
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 it matters:
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.