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.