A Tactical Framework for Market Penetration with a Multidimensional Organization

Abstract

A critical element to the growth opportunities in existing markets and new markets in neighboring sectors is penetration strategies. An entrepreneurial business that is interested in leveraging synergies to grow profitability must understand the dynamic nature of the market so that a suitable strategic posture can be taken. This strategy could be driven by tactical and deliberate action, or another exogenous force. The opportunities are there in many sectors and customers of multinational enterprises (MNE’s) exist almost everywhere. Cross border B2C e-commerce is expected to double by 2022 according to Forrester Research. So, how do MNE’s efficiently penetrate within segments and across geographic markets? Scaling opportunities exist across a multidimensional design (MDD) and the synergy opportunities between sites. This article describes methods and capabilities of market penetration ideally suited for an MDD. These themes emerged in the data when MDD leaders were asked about the roles of each function. In this case study an MNE utilized a multidimensional organization design to reach customers in many parts of the world. The author presents findings from this case and ultimately extracts ten propositions to guide client penetration strategy. Absent these measures, risk of revenue loss is enhanced significantly.