Market Penetration

As sec­tor reform fur­ther devel­ops in the Caribbean nations it becomes impor­tant for the reg­u­la­tors to adapt the tools used to reg­u­late the sec­tor. One of the instru­ments is the lev­el of mar­ket pen­e­tra­tion.

Mar­ket pen­e­tra­tion, defined as the extent to which an organization’s prod­ucts and ser­vices are used/bought by con­sumers, it is usu­al­ly expressed as a per­cent­age of the whole mar­ket seg­ment and rep­re­sents a company’s share of the total sales of a prod­uct or ser­vice. The lev­el of mar­ket pen­e­tra­tion can be used to deter­mine an operator’s poten­tial mar­ket pow­er and its poten­tial dom­i­nance of the mar­ket. There are sev­er­al vari­ables that can be mea­sured to iden­ti­fy the lev­el of mar­ket share/penetration, such as vol­ume of sale, val­ue of sale, and pro­duc­tion capac­i­ty.

The vari­able and cri­te­ria used in deter­min­ing the lev­el of mar­ket pen­e­tra­tion depends on the char­ac­ter­is­tics of the rel­e­vant mar­ket.

Tele­Con­sul­tan­cy has the resources to assists reg­u­la­tors with:

• Ana­lyz­ing a spe­cif­ic mar­ket sec­tor;

• Choose an ade­quate mea­sure­ment tool;

• Decide what the prop­er vari­able is by which to deter­mine dom­i­nance;

• Devel­op and imple­ment instru­ment to col­lect infor­ma­tion to deter­mine mar­ket share/level of pen­e­tra­tion.