Research and Analysis Paper of Payton Furniture Corporation

                    Analysis of Payton Furniture Corporation Student Name Institution                         Analysis of Payton Furniture Corporation Payton should come to grips with the world today, as cannibalization is virtually an inevitable vice. When Payton Corp or any company thereof decides to release a new product, they should consider how much similarity exists between the newly introduced products, rival’s products, and existing own product lines. It is paramount that in releasing the new affordable furniture line, Payton should exercise a certain degree of differentiation that increases their competitive advantage and reduces the instances of cannibalization as much as possible. The ideal situation, however, would be zero competition from own products but customers today demand that customer preference be a priority for a firm to be successful. Cannibalization can be a detrimental strategy, but if used correctly, it can be the recipe for success. Large corporations worldwide have employed the strategy successfully including Samsung in their production of their note series gadgets (Guide & Li, 2010). Cannibalization involves considerable risk, as the manufacturer is not able to ascertain or measure the projected sales for a non-existent product. However, Proctor and Gamble have used this strategy to its maximum effect by helping the company realize maximizing profits much credit to its brand name. The fact that Payton Furniture Corp. has a loyal customer base and a strong brand name should aid the company towards efficient and successful implementation of cannibalization. The company should however critically gauge and decide on the best time of introducing the strategy....