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Sprinkler Strategy
The sprinkler strategy (also known as sprinkler diffusion strategy) is a market entry strategy based on the principle of diversification in which a company attempts to enter as many markets as possible in a relatively short time. A successful implementation of the sprinkler strategy requires a high standardization of marketing activities due to the extreme difficulty implied in the simultaneous maximization of marketing activities' customization and of the number of successful market entries. Usually, a certain amount of failed market entries and withdrawals from some markets is accepted if a sprinkler strategy is used. In case a waterfall strategy and a sprinkler strategy are used together, this yields a combined waterfall-sprinkler-strategy.Schmid, S. (2006): ''Internationales Management'', 5th ed., München-Wien-Oldenbourg. Advantages and disadvantages ''Advantages'' of the sprinkler strategy are: * Once a market is successfully entered, its market entry barriers work aga ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Market Entry Strategy
Market entry strategy is a planned distribution and delivery method of goods or services to a new target market. In the import and export of services, it refers to the creation, establishment, and management of contracts in a foreign country. Factors affecting viability of entry Many companies can successfully operate in a niche market without ever expanding into new markets. On the other hand, some businesses can only achieve increased sales, brand awareness and business stability if they enter a new market. Developing a market-entry strategy involves thorough analysis of potential competitors and possible customers. Relevant factors that must be considered when deciding the viability of entry into a particular market include trade barriers, localized knowledge, price localization, competition, and export subsidies. Timing of market entry Lymbersky has said that "What countries to enter and when mainly depends on the financial resources of a company, the product life-cycle ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Waterfall Model
The waterfall model is a breakdown of developmental activities into linear sequential phases, meaning that each phase is passed down onto each other, where each phase depends on the deliverables of the previous one and corresponds to a specialization of tasks. This approach is typical for certain areas of engineering design. In software development, it tends to be among the less iterative and flexible approaches, as progress flows in largely one direction (downwards like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, deployment, and maintenance. The waterfall model is the earliest systems development life cycle ( SDLC) approach used in software development. When it was first adopted, there were no recognized alternatives for knowledge-based creative work. History The first known presentation describing the use of such phases in software engineering was held by Herbert D. Benington at the Symposium on Advanced Programming ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Entry Barrier
In theories of Competition (economics), competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a Market (economics), market that incumbents do not have or have not had to incur. Because barriers to entry protect incumbent firms and restrict competition in a market, they can contribute to distortionary prices and are therefore most important when discussing competition law, antitrust policy. Barriers to entry often cause or aid the existence of monopolies and Oligopoly, oligopolies, or give companies market power. Barriers of entry also have an importance in industries. First of all it is important to identify that some exist naturally, such as brand loyalty. Governments can also create barriers to entry to meet consumer protection laws, protecting the public. In other cases it can also be due to inherent scarcity of public resources needed to enter a ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
First-mover Advantage
In marketing strategy, first-mover advantage (FMA) is the competitive advantage gained by the initial ("first-moving") significant occupant of a market segment. First-mover advantage enables a company or firm to establish strong brand recognition, customer loyalty, and early purchase of resources before other competitors enter the market segment. First movers in a specific industry are almost always followed by competitors that attempt to capitalise on the first movers' success. These followers are also aiming to gain market share; however, most of the time the first-movers will already have an established market share, with a loyal customer base that allows them to maintain their market share. Mechanisms leading to first-mover advantages The three primary sources of a first-mover advantage are technology leadership, control of resources, and buyer switching costs. Technology leadership First movers can make their technology/product/services harder for later entrants to replic ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Diversification (marketing Strategy)
Diversification is a corporate strategy to enter into or start new products or product lines, new services or new markets, involving substantially different skills, technology and knowledge. Diversification is one of the four main growth strategies defined by Igor Ansoff in the Ansoff Matrix: Ansoff pointed out that a diversification strategy stands apart from the other three strategies. Whereas, the first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, the diversification usually requires a company to acquire new skills and knowledge in product development as well as new insights into market behavior simultaneously. This not only requires the acquisition of new skills and knowledge, but also requires the company to acquire new resources including new technologies and new facilities, which exposes the organisation to higher levels of risk. Note: The notion of diversification depends on th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Capacity Utilization
Capacity utilization or capacity utilisation is the extent to which a firm or nation employs its installed productive capacity (maximum output of a firm or nation). It is the relationship between output that ''is'' produced with the installed equipment, and the potential output which ''could'' be produced with it, if capacity was fully used. The Formula is the actual output per period all over full capacity per period expressed as a percentage. Engineering and economic measures One of the most used definitions of the "capacity utilization rate" is the ratio of actual output to the potential output. But potential output can be defined in at least two different ways. Engineering definition One is the "engineering" or "technical" definition, according to which potential output represents the maximum amount of output that can be produced in the short run with the existing stock of capital. Thus, a standard definition of capacity utilization is the (weighted) average of the ratios ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
