posted on 06-06-2019

Eating Someone's Lunch

Updated October 1, 2019

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.