Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

Factors Influencing Market Penetration

R. W. Allen
Management Science
Vol. 13, No. 1, Series A, Sciences (Sep., 1966), pp. 22-41
Published by: INFORMS
Stable URL: http://www.jstor.org/stable/2627910
Page Count: 20
  • Download ($30.00)
  • Cite this Item
Factors Influencing Market Penetration
Preview not available

Abstract

The decision of a company in the selection of a technological business area to exploit is a difficult one to make because of the many complex factors involved and the uncertainties of predicting future events. To assist the management decision processes, a mathematical model is developed which relates the many factors such as company capability, time, market, competition, investment and costs to the expected economic gain over time. The basis of the model presupposes that the markets of interest are composed of many product areas in which companies will compete for a share. Thus, the model is concerned with two opposing forces (competition versus the company) trying to penetrate the same available product area simultaneously over a given time period. In addition to the model formulation several basic types of markets are analyzed as to their effect on the various economic factors. Also, the effect of the investment program in the market penetration is exhibited as well as the effect of loss in market shares on the maximum economic gain.

Page Thumbnails

  • Thumbnail: Page 
22
    22
  • Thumbnail: Page 
23
    23
  • Thumbnail: Page 
24
    24
  • Thumbnail: Page 
25
    25
  • Thumbnail: Page 
26
    26
  • Thumbnail: Page 
27
    27
  • Thumbnail: Page 
28
    28
  • Thumbnail: Page 
29
    29
  • Thumbnail: Page 
30
    30
  • Thumbnail: Page 
31
    31
  • Thumbnail: Page 
32
    32
  • Thumbnail: Page 
33
    33
  • Thumbnail: Page 
34
    34
  • Thumbnail: Page 
35
    35
  • Thumbnail: Page 
36
    36
  • Thumbnail: Page 
37
    37
  • Thumbnail: Page 
38
    38
  • Thumbnail: Page 
39
    39
  • Thumbnail: Page 
40
    40
  • Thumbnail: Page 
41
    41