Cannibalization Analysis: what is it & how can I use it?

Cannibalization Analysis is a crucial tool for businesses operating from multiple locations, helping them make informed decisions about where to expand, relocate, or close. It evaluates the impact of a new location on existing nearby locations, determining whether it will "cannibalize" customers and potentially cause negative revenue impacts. By analyzing data on population, footfall, and catchment areas, businesses can identify potential cannibalization and make strategic decisions about resource allocation and expansion. The analysis typically consists of four steps: data collection, preprocessing, running the Cannibalization Analysis, and decision-making. With its user-friendly functions and interactive visualizations, Cannibalization Analysis can help businesses balance competing demands and stay ahead of competitors, making it a valuable tool for organizations operating from multiple locations.