Market penetration is one strategy that many businesses consider when they decide to expand their business operation to other regions but within the same market. Market penetration usually involves the establishment of business relationship to other region. With market penetration, businesses will be able to measure their success. For instance, the measure of percentage of sales in different region is one way to determine where a company is harvesting success and where it needs improvement in terms of operation and provision of services.
An example of a company that successfully gains from market penetration is FSI International, Inc., a supplier of surface conditioning equipment and technology for microelectronics manufacturing (FSI-International.COM). Since FSI decided to penetrate the Asian market with direct sales and support, they found a considerable growth in revenue. According to Electronic News Online, 40% of FSI's current sales in 2004 were from Asian customers. This is equivalent to an increase of 29% of Asian customers as compared to last year that only comprises 11% of all sales. Don Mitchell, FSI's CEO and President, describes their strategy of penetrating the Asian Market with direct sales, states that (Electronic News, 2004)
"By providing a full portfolio of support services directly...
As a result, our customers are now showing great interest in expanding beyond their use of FSI traditional spray cleaning technologies to include new back-end-of-line and wafer bumping applications for spray as well as employing our advanced immersion and CryoKinetic technologies,"
Market Development
Marketing Essentials Online define marketing development as
The process of finding new markets for products a company is already making.
Marketing development is almost similar to market penetration in that both aims to expand a business. The only difference is that market development may involve a process of entering a new venture or market segment for an existing product, while market penetration is a business strategy where a company focuses on the same market but on an expansion to a new region or location.
An instance of a business where market development has been a success is the joint venture of Sony and Ericsson companies. The merging of these two companies, now known as Sony Ericsson, provided them with the opportunity of extending their products into a new market segment -- with Sony entering the mobile cellular phone market segment, and Ericsson entering not just the telephone…
Market Patterns One industry that has shifted in the past few years in terms of its structure is the smartphone operating system market. A few years ago, most of the early smartphones were based around proprietary operating systems. Palm and Blackberry dominated the market. Apple joined the industry with the introduction of the iPhone, but more recently other firms have entered the market as well, including Google (Android), Windows, Symbian and
While standardization may eventually win out in a market, it is only by virtue of having so many choices that the ideal standard can be determined. 4. It is important to build a strong brand because the brand is the one source of sustainable competitive advantage that can be derived from marketing (Yap, 2006). The brand contains within it all of the past marketing that the company has done. The
Entering the Brazilian Market Problem Statement Peak must decide on a pricing strategy for entering the Brazilian market. It has narrowed its options down to three: penetration pricing, skim pricing and cost-plus pricing. This report will evaluate the company, the market and each of these three options in order to determine the best choice of pricing strategy when entering the Brazilian market. Concept/Theory: SWOT Analysis The SWOT analysis is a tool whereby the company
Market-Based Management Principles Vision The foremost principle of market-based management is vision. The vision helps determine strategies the organization implements in creating long-term value in market and customer management. The success of a company in the market lies in institutionalization of strategies that create value (Block, Wood, & Barnett II 2002). Vision, provides guidelines for the company on how to create sustained value and adaptability in the dynamic market. Vision outlines strategies a
Market Structures Principles of Microeconomics ECO/365 Principles Microeconomics Differentiating Between Market Structures Cadillac Automotive Cadillac Automotive is a U.S. based automobile manufacturer that manufactures luxury vehicles. The company is owned by General Motors. Cadillac originally used to make carriages. The company sells in more than three dozen countries with its major operations centered in North America. It is regarded as the second oldest automobile manufacturer in U.S. after GM marque Buick. The industry Cadillac
Strategic Advantage Introduction and Description of the Problem Tesco is the market leader in the UK supermarket industry, with a share of 28.8% as of the summer 2014 (Statista 2014). Other major firms in the industry are Asda, Sainsburys and Morrisons, but the industry overall is highly fragmented. Most firms in the industry compete in the mainstream segment of the market, including Tesco. Few major players operate with a premium platform. The