| Summary: | 碩士 === 國立臺灣大學 === 商學研究所 === 85 === Due to the rapid changing of environment ,most enterprises have faced the
challenge to maintain their competitive advantage. It's no doubt that innova-
tion is the best way to sustain the competitive advantage. Previous research
shows that few product survive in the market in five years. Therefore, produ-
ct extension become a popular way, although extended product may cannibalize
the market share of original product. This study attempts to explore how new
product succeed in the market ,and to investigate the cannibalization effect
while a firm extends its successful product.We first figure out the main pro-
duct features of the automobile by adopting factor analysis method. Therefore
we investigate the impact of product features on cannibalization effect. The
research results shows the cannibalization effect do exist in the automobile
market.
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