1- Dell just allowed Walmart to begin selling its computers. This was the first move away from direct mail order selling of computers …
Is this a MARKET PENETRATION ?
2- Limited Brands is selling its Express and Limited divisions to focus on its Victoria’s Secret
and Bath & Body Works divisions.
Is this a Divestiture Strategy?
Categorized | Affiliate Marketing 101
What Kind Of Business Strategy Is This?
Posted on September 9, 2010.
First of all:
1. Market Penetration is Depth of sales of a particular product in a given market. The deeper the penetration, the higher the volume of product sales. In order to expand the sales of current products in markets where their products are already being sold, marketers utilize market penetration strategies such as cutting prices, increasing advertising, obtaining better store or shelf positions for their products, or innovative distribution tactics. So yes you were right that is an example of what Market Penetration is, it’s how dell are allowing walmart to sell there products, known as distribution tactics.
2. Divestiture is disposition or sale of an asset by a company. A company will often divest an asset which is not performing well, which is not vital to the company’s core business, or which is worth more to a potential buyer or as a separate entity than as part of the company. So yes your right, they are selling off the asset to focus on a part of a business, in this case “Victoria’s Secret
and Bath & Body”