Market penetration is a growth strategy for increasing market share in existing markets by improving or selling more existing products and services. It can raise revenue, strengthen the brand, create economies of scale, and reduce reliance on marketing. section 3.2.2
Common approaches include:
- Changing prices, enhancing existing products, acquiring competitors, and expanding sales or marketing initiatives. section 3.2.2
- Modernizing existing systems to improve operating costs, automate manual work, increase employee productivity, or accelerate innovation in established products. section 3.2.2
- Focusing modernization investment on a specific market when pursuing several growth strategies at once would spread resources too thinly. section 3.2.2
Latin American challenger bank
A Latin American challenger bank established itself through rapid execution and highly rated user experience. Increasing penetration meant getting more people to use an existing service, making the bank’s architecture and modernization priorities relevant to an established product rather than a new one. section 3.2.2
Leaders should distinguish investment in existing-market penetration from investment in new markets, then connect a focused business opportunity to the modernization needed to deliver it. section 3.2.2
