Quantitative Risk Assessment vs Qualitative Risk Assessment
Market cannibalization - Market cannibalization is the negative impact of a company's new product on the sales performance of its existing and related products. It refers to a situation where a new product "eats" up the sales and demand of an existing product, potentially reducing overall sales, even if sales of the new product are increasing.
After a detailed study of the market, if the risk assessment team of a mobile company turns up with a high probability of market cannibalization for their recent product due to the upcoming product, it is an example of Qualitative Risk Assessment.
After the Qualitative Risk Assessment, if the team drills down deep and comes up with a percentage stating that 25 % of our in stock mobiles are at risk due to the launch of the upcoming product. This is an example of Quantitative Risk Assessment.
Market cannibalization - Market cannibalization is the negative impact of a company's new product on the sales performance of its existing and related products. It refers to a situation where a new product "eats" up the sales and demand of an existing product, potentially reducing overall sales, even if sales of the new product are increasing.
After a detailed study of the market, if the risk assessment team of a mobile company turns up with a high probability of market cannibalization for their recent product due to the upcoming product, it is an example of Qualitative Risk Assessment.
After the Qualitative Risk Assessment, if the team drills down deep and comes up with a percentage stating that 25 % of our in stock mobiles are at risk due to the launch of the upcoming product. This is an example of Quantitative Risk Assessment.
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