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It’s no surprise that this year’s Datamation Product of the Year Award in the Enterprise Linux category was snagged by Red Hat. The open source pioneer, founded in 1995 (a mere four years after Linus Torvalds released the first Linux kernel) has long been the dominant Linux vendor.
But even a quick look at the burgeoning Linux market reveals that Red Hat faces a crowd of competitive threats. A competitor lurks behind every server.
The deep-pocketed Oracle offers a clone of the Red Hat OS, as does the popular CentOS distro. Ubuntu is capturing legions of hearts and minds with its easy-to-use desktop releases. Novell SUSE (which supported Xen virtualization before Red Hat did) touts its Microsoft interoperability agreement – in theory reassuring Windows-based sysadmins. Sun Microsystems claims its OpenSolaris project has in excess of 10,000 members. And Hewlett-Packard offers support for Debian on some of its servers. (In 2006, HP claimed that $25 million in hardware sales was due to its Debian support.)
Still, said Illuminata analyst Gordon Haff, in the x86 world, Red Hat has “established itself as the go-to Linux for enterprise software certification. Novell SUSE also has a pretty good portfolio of certified apps, but in terms of market share it’s quite a ways behind.” The lopsided market share battle between this David and Goliath is, depending on who’s counting, 90 percent to 10 percent.
(However, Haff said, “Frankly there’s not that much difference, from a product perspective, between the different enterprise Linux products out there.”)
“We’ve seen a lot of these ‘flavor of the month,’ or ‘flavor of the year’ among Linux distributions over the past five years or so,” Haff said. “People talked a lot about Gentoo for a period, for example. But then the buzz kind of goes down.” At the moment it’s Canonical’s Ubuntu that’s riding the buzz wave, though Canonical doesn’t have the legacy data center presence of Red Hat.
Yet while Red Hat has achieved status as top dog, that’s not enough, Haff opined.
“Their bigger challenge is, in spite of this dominant position they have in certified enterprise Linux: they’re not that big a company. They’re not Oracle.” (Red Hat’s market cap is $3.5 billion, in contrast to Oracle’s $94.5 billion and Microsoft’s $257.3 billion.)
To thrive long term, the company needs to move into the neighborhood of major players. “I think one of the things that was discussed with their new CEO on board is: can Red Hat take it to the next level, and really move beyond just having a Linux offering?” Haff said. “Can they do more to leverage their JBoss acquisition? Can they do more around this messaging real time and grid initiative they have? And so forth.”
The company’s fate rests not so much on the quality of its enterprise Linux platform – the product is well regarded. Instead, “It’s kind of: it’s that all there is and all there’s going to be? In which case, Red Hat will presumably continue on as a company, but probably with fairly modest growth.”
On the other hand, growth for this small company means bumping up against some tough prospects. “As they try to build up, to a broader stack, a broad ecosystem of products, they’ll also be competing against best-of-breed, or ‘piece parts’ running on their own operating system base,” Haff noted.
In other words, growth is essential but it won’t be easy.
One of Red Hat’s key strategies for growing market share will be to stress cost savings.
“The whole context for enterprise infrastructure is changing right now,” said Scott Crenshaw, Red Hat’s VP of Enterprise Linux Business. “I think the real reason that companies increasingly deploy more open source – and I believe that will overwhelmingly be Red hat – is because we are attacking new cost drivers that historically Linux and open source haven’t attacked before, and that I don’t believe the competitors in the field address much at all.”
An application is an expensive thing to own, he noted. For each app, companies have to acquire it, install it, configure it, tune it, test it, deploy it, manage it, and certify it. The associated costs may account for 30 to 60 percent of an IT budget, depending on the situation.
The Red Hat Enterprise Linux (RHEL) platform is built to reduce this cost, Crenshaw said, by providing a common platform for apps to run on, and then insulating that package from changes.
You're reading Red Hat Competes In Crowded Market
Let’s take a look at Sun Microsystems, the once mighty Unix vendor and maker of servers that powered the Internet, circa 1982. And Red Hat, a company that’s been purveying Linux software since 1995. Sun sells more than $13 billion of goods and services per year, while Red Hat sells a little over $600 million. So which is worth more?
Ask the market (and remember the market is not stupid, at least not in the long term), and the answer is that they’re both worth about the same: Both companies are currently valued by the market at about $2.7 billion. (Actually Red Hat is worth more than Sun today — which is a story in itself.) Sun’s value has been dropping like a stone over the past few months, while Red Hat’s has been soaring — almost doubling since mid-November. Today it’s up almost 2.5 percent.
There are a number of reasons for Sun’s declining share price that have been widely discussed. It’s not clear where Sun is going to make money in the future, in particular how or whether it will monetize its open source software and whether open source developers will drive sales for its systems and services. There’s probably also a feeling on the part of the market that Unix is not “where it’s happening.” Since Sun has cash reserves of roughly the same as its market valuation, the market is essentially valuing the entire Sun business at nothing.
But more interesting by far is the fact that the market values Red Hat — a Linux company with revenues of $600 million — at almost $3 billion in the current economic and market conditions. Why it is valuing Red Hat at this figure is also interesting.
Sun’s cash reserves give its shares an underlying value, which explains why the company might be worth what it is even if you value the business itself at nothing. But Red Hat has far less cash: about $1 billion at the last count. Adding in other assets doesn’t come close to $2.7 billion — the company is not being valued on an asset basis. And Red Hat pays no dividend (and isn’t a mature business like an oil company anyway), so it can’t be valued as a yield stock.
That leaves valuation on an earnings basis. The company’s earnings per share (EPS) on a historic (ttm) basis is about 41 cents. With the share price standing at $14.98, that puts the Red Hat on a price/earnings (P/E) ratio of 35.84. Which is very high indeed in the current market climate.
An uncommonly high P/E ratio might mean that the market has very high hopes for Linux in general, and Red Hat in particular. And that might make sense in the current economic climate. With tough trading conditions and sales plummeting for many businesses, open-source software sounds mighty attractive (without going in to the features and benefits and the whole cost of ownership thing). When markets get an idea in their head, money tends to flock to the obvious stocks — and Red Hat is arguably the brand in enterprise Linux. A P/E of 35 would then imply that the market expects some serious earnings growth from Red Hat — and perhaps Linux more generally — in the foreseeable future.
There’s another possibility of course. In contrast to Sun, the market might be expecting someone to come in and make a bid for Red Hat. After all, it’s Linux, not Unix, that the market seems to fancy at the moment.
Who might buy Red Hat is a game that can be played endlessly, and just about everyone who is anyone has been mentioned in the past — Microsoft, Dell, Google, Oracle, you name it. So what about another name that’s been mentioned less frequently in the past: Sun? Much of Red Hat’s business is selling support services for open source software, which is an activity Sun would like to be doing more of. Sun’s pretty much got the cash, and such a move might get its share price moving north again.
OK, so it’s not really that simple, and historically the two companies haven’t been the best of friends, but then who’d have thunk Microsoft would invest in Apple (to the tune of $150 million) back in 1997?
Ah, yes, Apple. Now there’s a company with the best part of $25 billion in the bank. I wonder if it is planning to spend any of that cash while Steve Jobs isn’t around? It could buy Sun and Red Hat if it wanted to, and establish itself in the enterprise marketplace without even breaking its stride. Now there’s a thought that puts the relative value of some well known names into perspective.
DEC PDP-11 in 1979.
Hat Design Software: 5 Best to Use in 2023
The easiest way to start designing hats is to use specialized design software that enables you to use different templates.
It is very important that the hat designing software you choose focuses more on letting you create than tweaking the software.
One of our suggestions that you can use to create amazing designs for hats is a tool from the Adobe suite.
To get more information regarding the best
hat creator app
options worth investing in, check out this guide.
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Being able to design your own apparel is a great way to stand out from the crowd and represent your personality entirely.
But because not all of us have any clothing design skills, getting some help from CAD (Computer Aided Design) software is a must.
In order to create a virtual model of your preferred apparel item (t-shirts, blouses, hats) you can choose between 2D elements (panels), or create the full 3D object directly.
If you are planning on transferring the virtual project into reality, then it would be recommended that you create your project using the 2D option.
This allows for a faster transfer of your hat panels into printed guidelines, allowing you to start working faster.
In this article, we will explore some of the best software options that allow you to design your dream hat, no matter if you have experience with design or not.
Adobe Illustrator is our top pick for the best hat design software available on the market because of its never-ending capability to create amazing designs.
This software enables you to create projects from scratch, edit older projects, or simply use one of the multiple design templates.
There is no software on the market that gives you such a great selection of templates and presets to choose from.
No matter if you are going to use the creation templates as they are, or edit them and make your own, this process is simplified considerably.
Here are some of the most important features of Adobe Illustrator:
With Adobe Illustrator you can create new hat design projects, edit older projects, or simply use one of the multiple design templates. Try it now!
Free trialVisit website
Solidworks is a great software option that can help you create professional-looking renderings and models of your preferred hat designs.
The wide range of features included in this software allows you full freedom when it comes to the way you can modify and edit your virtual model.
You can use this program to design your virtual hats, can simulate the use of the model to help you spot any issues with the structure, and can even estimate material costs depending on the choices you make.
This tool also gives you access to a wide range of elements for your design – pins, straps, etc., extending its customization capabilities even further.
Here are some of the best features found in SolidWorks:
Can set custom geometry and scene setup
Can add markups to material panels and other parts of your design
Customizable material appearances, textures, decals, etc.
Can set up custom material properties, notes on nodes, and even design content tables
Can set custom relationships between your project’s elements
An extremely exact measuring tool that assures your final template is as exact as possible
⇒ Get SolidWorks 3D
Optitex is another great software option that enables you to create your custom hat designs with ease. The features found in this software allow you to customize every aspect of your project, set custom stitches, etc.
Because of a user-friendly and easy to understand interface, Optitex is extremely useful for both moments in which you have a design in mind and need to transfer it before you lose the inspiration.
What makes this software stand out from the crowd is its ability to combine 2D and 3D elements into one project, without turning managing both types into a chore.
⇒ Get Optitex
Rhino 6 is another great design tool for your hats project that offers an incredible range of features.
As in the case of SolidWorks, Rhino is more of a CAD software than Optitex and requires a bit of a learning curve to be able to use it properly.
Once you move past the learning stage, this software offers you basically unlimited customization power and can create anything from car designs to clothing and hats.
The measurement done in this tool are extremely exact, to the level that you could even build car parts with it.
This feature comes in very handy if you’re trying to design a new model of a hat, and need to have exact panel templates in order for the final product to look as it was designed.
One of the best features found in this program is the fact that it uses double-precision meshes, making it easier than ever to get exact results.
You can also animate your project if you want to, see the way it performs in real-life environments.
In order to start creating a hat in Rhino, you will first need to create the individual panels of your project, then use the Unroll Surface command.
This transforms all the panels of your project into 2D flat surfaces that can be printed to scale. Having a printed to scale design makes it easy to cut out the materials and build your project.
⇒ Get Rhino 6
Modo is another very useful tool to have downloaded on your PC.
This app is designed specifically to tackle 3D modeling, but it can also customize the textures you use in your project, and also gives you the ability to create beautiful renders.
Because of Modo’s simple user interface, anybody can understand how to use it easily, but that doesn’t mean that it lacks in other departments.
Here are some of its best features:
Great photorealistic rendering with customizable shading and lighting settings
WYSIWYG (What You See Is What You Get) type software
The wide range of available tools can be extended even more by creating your own
Shading system based on layers and nodal connections
A wide range of built-in materials that look real
Access to even more customization by downloading different plugins
⇒ Get Modo
In this article, we explored some of the best software options on the market that can help you create beautiful looking hat designs.
After your design is complete you can simply use the built-in features to print out the designs to scale, and start creating your hat.
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When you use Microsoft Excel for things like a household budget, business financials, or product inventory, you may end up with negative numbers at times. To make those less-than-zero numbers pop, here’s how to make them a red color.
We’ll explain three methods for showing negative numbers as red in Excel. Use whichever you’re most comfortable with or works best for your sheet.
Table of ContentsFormat the Cells for Negative Red Numbers
Select the cells you want to format.
For the entire sheet use the
button (triangle) on the top left of the sheet between column A and row 1. You should see your whole sheet shaded.
For particular cells, drag your cursor through them or hold
as you select each one.
tab, choose the format type in the
list on the left. You can format negative Numbers and Currency in a red font color.
On the right, pick one of the two red options in the
box. You can use just red for the number or place the number in parentheses and make it red.
at the bottom to apply the change.
You should then see any negative numbers in your selected cells turn red while the positive numbers remain the same.Create a Custom Format for Negative Red Numbers
While the above is the simplest way to turn negative values red, you may not like the two choices you have. Perhaps you’d like to keep the negative sign (-) in front of the number. For this, you can create a custom number format.
Select the cells or sheet where you want to apply the formatting as described in Step 1 above.
list on the left.
box on the right enter:
to apply the formatting.
Now you’ll see your worksheet update and turn negative numbers red while retaining the minus signs in front of the numbers.Use Conditional Formatting for Negative Red Numbers
Select the data set where you want to apply the formatting or the entire sheet as described above.
Go to the
tab and select the
drop-down menu in the
section of the ribbon.
Move your cursor to
Highlight Cell Rules
in the pop-out menu.
In the small box that appears enter a zero (0) in the
Format cells that are LESS THAN
In the drop-down list to the right, pick
Alternatively, you can choose another quick format from the list or select
to use your own. If you pick the latter, go to the
tab and use the
drop-down box to choose the shade of red you want. You can use
to see additional options. Apply any other formatting you’d like to the cells with negative numbers.
again if you picked a custom option.
You’ll then see your selected cells update to display negative numbers in a red font color and any other formatting you chose.
With built-in ways to show negative numbers red in Excel, you can make sure those numbers stand out from the rest in your sheet.
The data science job market is growing faster than most others, as companies of every shape and size look for professionals to solve their data problems.
Whether it’s modeling and analyzing data sets or preparing data for machine learning (ML) projects, companies need more data science talent and are sharpening their recruitment and retention strategies in that area.
Read on to learn more about the trends that experts are seeing, both from the recruiter’s and the candidate’s perspectives, in the data science job market:
Also read: Top 50 Companies Hiring for Data Science Roles
Many data science candidates are growing more interested in the educational opportunities a potential employer can offer them.
Scott Hoch, head of data at chúng tôi , an artificial intelligence (AI)-powered RevOps platform provider, believes that many less experienced data professionals are hoping to find a company that will provide supportive mentorship and learning opportunities as they look to expand their skills.
“When I talk to people in this community, either coming out of boot camps or who are making the switch into data science, they’re always looking to learn,” Hoch said.
“For these people earlier in their career, they’re looking for mentorship, looking to grow, and they’re looking to understand how data science fits into a real-world project.”
David Sweenor, senior director of product marketing at Alteryx, a data science and analytics company, said that candidates want to keep abreast of the latest trends in the market and work for a company that allows them to apply that learning to their projects.
“Data science candidates are looking to use some of the latest machine learning innovations and techniques to solve real-world business problems,” Sweenor said.
Many companies are listening to candidates’ desires for additional education and are finding ways to incorporate skill-building through partnerships in the education sector and learning resources.
Sunil Senan, VP of DNA at Infosys, a global IT services and digital transformation company, explained how companies are finding new ways to invest in their existing talent through a mixture of certifications and courses for non-technical employees.
“A key trend in the data science job market includes enterprises investing early in the talent pipeline through partnerships with educational institutions, training programs, and upskilling from within,” Senan said.
“Businesses are partnering with institutions to ensure the correct educational opportunities are being implemented at universities, along with creating strong training programs for digital careers.
“Training platforms such as these are building strong tech candidates, giving non-tech professionals the opportunity to gain more expertise within fields like data science, which in turn helps enterprises upskill non-tech employees from within.”
Continue your data science education: 10 Top Data Science Certifications
When many data scientists first come out of a degree or certification program, they know how to code and generally pursue data science projects, but they might not always bring specialized skill sets and experiences to the table.
Companies are now searching for data science specialists who can quickly apply their existing skills to a specific problem the company faces.
Kevin Pursel, VP of recruiting at Doma, a real estate tech solutions company, shared why his company and others like it are looking for data science specialists over generalists.
“As opposed to hiring a statistician that can write a few lines of code, now we’re looking for far more niche skill sets, such as deep learning engineers, NLP engineers, computer vision engineers, risk data scientists, machine learning engineers, data engineers, and even machine learning operations engineers,” Pursel said.
“It’s getting more and more difficult to grow as a data science generalist. Companies want to hire specialized people that can push the capabilities of their products and organizations.”
Although many others agree that specialists have more earning and growth potential than generalists in the current data science job market, it’s important to note that generalists might have more of an opportunity at smaller companies or those that are just starting to focus on data science.
Hoch from chúng tôi explained how large and small companies have different expectations for their data science talent:
“There’s a divide between what large companies are looking for in data scientists and what smaller companies and startups are looking for,” Hoch said.
“That divide is growing. At larger companies, they already have a lot of the infrastructure in place for managing their data and cleaning it up. They’re looking for data scientists and researchers to come in and just go very deep on data science problems.
“Whereas startups and smaller companies might not have all of that data science and data infrastructure in place. They’re looking for jacks-of-all-trades who can start getting insights out into production and work on more of the stack. So a lot of people are coming into data science, and the divide and needs between larger and smaller companies seem to be growing.”
Also read: Key Machine Learning (ML) Trends
Data science careers are hardly limited to tech companies or the “Fortune 500”; companies of different sizes, locations, and industrial backgrounds are hiring for data talent across the board.
Data science candidates recognize they are in high demand right now, and as a result, many are looking for companies with missions that align with their personal interests and values.
Stuart Davie, VP of data science at Peak, a decision intelligence company, said that what a company stands for can be a huge draw for data science candidates.
“Data scientists in general are relatively deep thinkers and are often motivated by topics like ethics and sustainability,” Davie said.
“While these are not usually the main things they are looking for in a role, ethics and sustainability initiatives that data scientists can be involved in can help set your company apart from the competition or present worthwhile opportunities that increase satisfaction (and retention).”
Jeff Kindred, PHR, senior technical recruiter at Shelf Engine, a company that specializes in automating insights into grocery supply chains and waste, has personally seen how data science candidates are compelled to join organizations with missions they feel they can get behind.
“When I speak to candidates about why they are considering Shelf Engine as their potential next employer, I almost always hear that our mission, ‘To reduce food waste through automation,’ caught their attention. They then began to research our organization more and were very interested to learn about us and our data science opportunities.”
Many companies know they want and need data science talent for a variety of company projects, but several are hiring for these roles before they realize the exact scope of their projects.
When companies move forward with disorganized data goals, they’re finding that data science professionals become frustrated and quickly move toward new opportunities.
Hoch from chúng tôi shared two typical cases in which companies hire data talent before they’ve thoughtfully planned the work for them.
“One piece of feedback that I hear a lot when people are looking for new roles: they got hired to do data science at a company that was too young, and they had to do all of this other data engineering work, and it wasn’t a good fit,” Hoch said.
“The other one that I hear about a lot is big companies will try to tackle really big and hard machine learning projects where they don’t understand everything that’s required to go into it: the budget, the work, all of it.
“These data scientists will be brought in to work on really interesting-sounding projects, but the company’s just not ready to execute yet. That leaves these engineers in a tricky spot.”
Theresa Kushner, data and analytics practice lead at NTT DATA Services, an IT service management company, believes it’s not only important that the company sets clear projects and goals for data science talent, but that they also create a supportive environment where other departments understand and collaborate well on data projects.
“In today’s environment, [data scientists] also leave in search of more meaningful project work with companies that understand their capabilities,” Kushner said.
“One of the most frustrating environments for a data scientist to work in is within a company where there are few people who understand the value they can deliver. Data scientists may not always understand the businesses they support, but they do understand data and how to manipulate it to gain value.
“The data scientist relationship with the business sponsor of the work or project is a key to keeping a data scientist or to hiring one in the first place. … Overall, data scientists want meaningful work done in an understanding and supportive environment.”
Thiago da Costa, CEO of Toric, a data and business intelligence (BI) company, believes that many companies fail their data scientists when they don’t equip them with the right teams and tools to effectively manage data projects.
“A data scientist can only be productive if they are working in a team with data engineers, data analysts, software developers, ops, and other data-related roles,” da Costa said.
“Even if it’s somewhat easy to get a job, it is also easy to fail because companies are not well prepared, tooled, and organized to make this individual succeed. As a result, we are seeing a lot of people change jobs quickly and unhappy in organizations which over-hire for the role or are not prepared to make data a priority.”
Also read: Seven KPIs for AIOps Teams
Whether it’s ill-prepared resources or teams that don’t include well-rounded talent, many companies are responding to inefficiencies among data science teams with new roles that keep digital transformation at the forefront.
Cindi Howson, chief data strategy officer at ThoughtSpot, a big data analytics company, believes that analytics engineers will soon come into prominence on data science teams.
“For the last few years, data science has been the craze for companies looking to capitalize on digital transformation initiatives,” Howson said.
“However, the role of the data scientist has since lost its luster in recent memory as companies have failed to operationalize models, and universities and certificate programs have churned out coders who cannot apply their learnings in the business world. Data scientists spend countless hours on the drudgery of dealing with messy, disparate data — all of which has tarnished data science’s sheen.
“This year, I expect to see the rise of a new role in the industry that replaces data scientists: the analytics engineer. Paired with the ability for transformations to be done within cloud platforms on all data, analytic engineers will be essential to controlling transformation logic and leveraging the full capabilities of the modern data stack.”
Learn more about how to establish your data science career here: Today’s Data Science Job Market
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Digital marketing, conversion rate optimization, customer relationship management & othersIntroduction to Market Penetration
As soon as a company enters a new market, it strives for market penetration. The main objective behind the market penetration strategy is to launch a product, enter the market as swiftly as possible, and, finally, capture a sizeable market share. Market penetration is also sometimes used as a measure to know whether a product is doing well in the market or not.
This technique is more commonly applicable whenever a business sells prevailing products in an ongoing market. Marketers must consider the relevant market development or expansion grid data to decide which penetration tactic to adopt. In other words, the market may be saturated, or it may be in an intense competition scenario, or the products may have a low turnaround time. What should be the best tactic for all these different scenarios? Well, the answer to this question lies in the type of strategy you adopt. And yes, there are quite a few other penetration tactics. So without further ado, let’s know about a few of them.Market Penetration tactics
The following are the different market penetration tactics:1. Price Adjustment 2. Augmented promotion 3. Distribution Channels 4. Improving Products
It is true that to appeal to your customers, you must improve your product quality. However, sometimes communicating to them about the better standard of the product can do the trick, and no significant improvement in the product may be needed. This is because most consumers are encouraged to buy a product just by its appeal and do not necessarily check whether it proves itself. Thus, only by slightly adjusting the product and its packaging can you appeal more strongly and increase your sales revenue.5. Upsurge Usage
A compelling method of market penetration is the increased usage of any product or service. If a marketing promotion campaign is effectively delivered in a specific area, then it would lead to an upsurge in product use which would thus lead to better market penetration with the increase in sales figures.6. Knowing Risk and Growth
Most marketers, whenever they think of growth, think of new launches. However, it is only partially true. It can be risky too. When a new product is launched, the risk of it being successful or not exists. But, an efficient distribution channel and a smooth delivery process ensure that the product meets expectations. Similarly, entering a brand-new market segment can also be risky. Therefore, knowing your market and product is essential to do well and beyond expectations. An effective way to do this is to properly communicate with the customers and be sensitive to their requirements and wants.8. Be unique and think differently
Although the entire market penetration process seems simple and monotonous, it’s a big challenge if you perceive it to be. To overcome the challenge, your approach must be unique and highly innovative. A repetitive selling strategy would yield unsatisfactory results and hinder your growth potential. So, it would be better to think differently and modify your penetration tactics as and when required. By being more innovative and adding value to your products, you enhance your success chances.
Some actions you could consider to be unique are:
Educate your customers – This is important as many times people are unaware of the quality of the product and how it could be of use to them.
Make purchasing easier – Many successful businesses lend a credit facility to their customers and thus increase the customers’ ability to buy.
Widen the distribution network – Making your product available at more locations and better delivery and service options can also significantly boost your sales figures.
Generate referrals – If you can encourage your customers to give referrals, it would certainly affect your chances of sales. For example, you can offer gift coupons or reward points to those customers whose referrals get converted.
Changing product designs – By making the product more user-friendly, your chances of sales conversion significantly improve. For example, you could make a lengthy novel paperback instead of a hard-bound one.9. Diversification
The product penetration tactic of diversification entails manufacturing new products for new markets. A diversification strategy is usually followed whenever there is saturation in the current market or when environmental changes such as societal, economic, technological, or regulatory make it very hard to generate new sales in those markets. This strategy is most commonly followed by businesses in the health sector, such as hospitals. Hospitals have diversified their services through long-term care facilities, reimbursement, network referrals, and utilization. Those firms that have diversified on opportunities of their strengths have gained the most.10. Strategic Alliances Pros & Cons of Market Penetration Strategies
Market penetration strategies benefit from reduced prices to increase product demand and market share. As the demand for your product increases, your business saves money on product manufacturing costs due to the larger production volume. This strategy isn’t going to work for all products and all types of businesses. So, some companies utilize different marketing strategies than usual to be more effective.Advantages
1. Swift Growth
If your business and marketing activities aim to expand your customer base, market penetration is the remedy you need. When you propose lower prices than your rivals, tempting their customers becomes possible, and you receive what you expect. Thus, fast growth is heavily dependent upon lower prices. The more rational these are, the better your chances will be.
Combating with your rivals is one of the more challenging segments of the market penetration strategy. Just imagine you have plentiful competitors who are desperately trying to evolve and slow you down and are stealing your customers, which results in lowered profits for you. Following the rule of survival, your only way out is to fight and defeat them to stay at the top. For example, low initial prices will force your competitors to move to alternative strategies with changed market penetration pricing regulations. In this way, you will appeal to the lost consumers and render competitors on the defensive or leave the market altogether.
Lowering the product price, as you will, is not always possible. Sometimes, products are costly to manufacture, and tiny businesses find it difficult to survive while producing sufficiently to lower the production and price. This becomes more complicated when you have to deal with competing firms. Under such circumstances, it’s best to focus on the marketing campaign, product packaging, and enhancing public image because these have the same potential as having a low price structure.
Some firms that produce luxury products make the silly mistake of marketing them inexpensively. Hence, customers who adore luxury products would avoid being marketed as “inexpensive items.” Thus, if you’re concentrating on making luxury products, consider that low prices may make your sales thinner, and the product might even fail in the market.
A market penetration strategy isn’t going to work at a place where prices are previously set too low. For example, when prices are once low, the consumers have built trust in an existing company. Thus, entering that market and beating the competitor would be highly ineffective. Instead, a new company should focus on gaining its worth in the business by trying to create low prices of products.Conclusion
We’ve tried to showcase several market penetration strategies in the given article. However, such tactics will apply best when you use multiple ones together. A subsequent increase in your promotions should accompany the rise in the reach of your product. After increasing the promotion, you are bound to grow the product usage and, conversely, attract competition from your rivals.Recommended Articles
This has been a guide to Market Penetration. Here we have discussed the Top 10 Successful Strategies for Market Penetration and the pros and cons. You can also go through our other suggested articles to learn more –
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