Posted in Marketing and Strategy Terms, Total Reads: 272
Definition: Eating Someone’s Lunch
It a situation where one company takes away some of the market share of its competitor. This can be achieved by releasing a better product, giving better discounts or services etc. When the strategies pursued by one company causes the market share of another company to decrease, then the company is said to eat someone’s lunch.
Consider two companies A and B in the smartphone business. Initially A commands 60% of the market share and B commands 40% of the market share. However B launches a new model which increases its sales thereby making the market share 50-50. B is said to be eating A’s lunch in this context.