In comments to Marketing Magazine on the case of brand competition between sister companies of MyTeksi, Lawrence Chong, CEO of Consulus shared that cannibalising one’s own brand can be seen as more of a preemptive strike against its competitors.
“Companies have to be prepared in launching models to cannibalise their own rather than let others do it for them. Apple and Facebook are doing it, so this is the only way to thrive in a world of new ideas,” he explained.
Chong said that the key to surviving both brands relies on MyTeksi’s willingness and ability to improve in terms of differentiating its services.
“It has been a rather rushed approach to roll it out to grow market share. I believe after this, they will evaluate and evolve the two services further to clarify the propositions,” Chong said.
“It is similar to what Facebook is doing with its Messenger service and Whatsapp which is also owned by them. Nowadays companies are more prepared to let two similar models thrive and see which one survives,” Chong added.
Full article on MyTeksi is available here.