You are working at a major pharmaceutical company to develop a new headache medication. You have high hopes that the new product will significantly increase the revenues for your division. The new product is launched, and sales for your product are high, but overall revenue for your division is about the same. Analysis reveals that while your headache medication sold well, sales for two other medications with similar profiles went down. What has likely happened to explain the flat revenue?

Answer rating: 100% (QA)

Its possible that the introduction of the new headache medication led to a phenomenon known as cannibalization within the pharmaceutical companys prod... View the full answer