STRATEGIC PRICING FOR MARKET PENETRATION: ANALYSING ITS IMPACT ON GAINING MARKET SHARE IN COMPETITIVE INDUSTRIES

Abstract

This study examines the effectiveness of strategic pricing as a market penetration tool across competitive industries. Through analysis of case studies from technology, retail, and consumer goods sectors, we investigate how aggressive pricing strategies influence market share acquisition and long-term competitive positioning. Our findings indicate that while penetration pricing can accelerate initial market entry, its success depends heavily on factors including market elasticity, competitor response capability, and organizational capacity to sustain short-term revenue impacts. Results show that companies implementing penetration pricing achieved higher market share within the first year, but sustained success required complementary strategies in product differentiation and customer retention. This research provides frameworks for managers to evaluate penetration pricing viability and suggests optimal timing for transitioning to standard pricing models. Furthermore, it explores key factors influencing strategic pricing decisions, such as cost structure, consumer demand, and competitor behavior. Ultimately, this research contributes to the understanding of strategic pricing as a vital component of competitive strategy, offering insights into its implications for customer loyalty, profitability, and market leadership in dynamic and competitive industries.