Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Eating Someone's Lunch

What it is:

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

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.