Genetic erosion refers to the process in which a plant or animal species faces a gradual or drastic diminishing or complete loss of its unique gene pool. A gene pool is a complete set of unique alleles that occur in the genetic matter of all members of a particular species. In genetic erosion, there is a loss of genetic diversity. This means there is a loss of particular individual genes or a loss of a certain gene combinants or gene complexes.
In the natural course of things, you do see a certain amount of loss in genetic diversity. This, however, usually concerns a few individual members, not the entire species, and so is not really a matter of concern. The genetic erosion occurring as a result of loss of natural habitat and movement restrictions imposed by human developments and activities is more alarming.
The loss of genetic diversity in this case can weaken the entire species and can lead to eventual extinction. The disappearance of certain species can have an unfavorable effect on other species that might have depended on them in some manner for their survival and ultimately on the environment as a whole.