Strategies for Market Penetration
Strategies for Market Penetration
Abstract With the effect of globalization, we have witnessed a fast- changing nature of the international business environment. The competition in global playground, therefore, has been becoming fiercer and fiercer. In this decisive battle, every company must always struggle to survive. There is no other way but developing new strategies, which help to make their products and brand meet the consumers’ needs. From that standpoint, this paper concentrates on outlining some major strategy pursuits of Multinational enterprises (MNEs), when in the race to be the potential market leadership in the markets. How do they do to adapt and be able to compete in the local economy?
Table of contents Page
Introduction 4 1. Methodology 4 2. Necessary conditions 5 3. Market penetration strategies 5 3.1. Segment penetration 5 3.1.1 Forward integration 6 3.1.2 Horizontal integration 6 3.1.3 Increase present customers’ rate of use 7 3.1.4 Penetration Pricing strategies 7 3.1.5 Win consumers from the competitors 8 3.2. Segment enlargement 8 3.3. Market repositioning 8 3 Pros and cons of market penetration strategies 9 Conclusion 9 Appendics Figure 1: Ansoff Matrix 10 Figure 2: Heineken’s acquisitions in Western Europe 10 References 11
Introduction
The flow of globalization, along with the enomously potential profitability has driven Multinational enterprises (MNEs) internationally, bringing their brands and products to all parts of the world. However, it is not an easy job to step in and immediately get flourished in a new market, but require thourough strategy implementation to serving different market segmentations. Hill defines a firm’s strategy as the actions that managers take to attain the
Abstract With the effect of globalization, we have witnessed a fast- changing nature of the international business environment. The competition in global playground, therefore, has been becoming fiercer and fiercer. In this decisive battle, every company must always struggle to survive. There is no other way but developing new strategies, which help to make their products and brand meet the consumers’ needs. From that standpoint, this paper concentrates on outlining some major strategy pursuits of Multinational enterprises (MNEs), when in the race to be the potential market leadership in the markets. How do they do to adapt and be able to compete in the local economy?
Table of contents Page
Introduction 4 1. Methodology 4 2. Necessary conditions 5 3. Market penetration strategies 5 3.1. Segment penetration 5 3.1.1 Forward integration 6 3.1.2 Horizontal integration 6 3.1.3 Increase present customers’ rate of use 7 3.1.4 Penetration Pricing strategies 7 3.1.5 Win consumers from the competitors 8 3.2. Segment enlargement 8 3.3. Market repositioning 8 3 Pros and cons of market penetration strategies 9 Conclusion 9 Appendics Figure 1: Ansoff Matrix 10 Figure 2: Heineken’s acquisitions in Western Europe 10 References 11
Introduction
The flow of globalization, along with the enomously potential profitability has driven Multinational enterprises (MNEs) internationally, bringing their brands and products to all parts of the world. However, it is not an easy job to step in and immediately get flourished in a new market, but require thourough strategy implementation to serving different market segmentations. Hill defines a firm’s strategy as the actions that managers take to attain the
References: 1 Hill, C.W.L ( 2011). International Business: Competing in the Global Marketplace, p.402. 2 D.Besanko, D.Dranove, Shanley, M. Schaefer (2010). Economies of scale and scope, p.41. 3 John O’Shaughnessy (1995), 3rd edition. Competive Marketing: A Strategic Approach, p. 80. 4 Robert E. Stevens, Philip K. Sherwood, Paul Dunn (1993). Market Analysis: Assessing Your Business Opportunities, p. 24 5 Aristidis Bitzenis and Pyrros Papadimitrou, ( 2012) 6 William J. Carney, Essentials Mergers and Acquisitions, Wolters Kluwer Law & Business ( 2009), p.7 7 Freek Vermeulen, case study: Heineken, international growth and acquisitions, London Business school, reference CS 05- 047, 2007 8 http://www.just-drinks.com/market-research/. Netherlands/Singapore: Heineken bids for final 5% of Asia Pacific Breweries. James Wilmore, 4.12.2012 9 Tony Proctor, (2000), Strategic Marketing: An Introduction, p.240 10 O.C. Ferrell and Michael D. Hartline, (2011), Marketing Strategy, p. 247 11 John Amis and T