Final answer:
A company can benefit from market penetration by focusing on efficiency improvements and increasing market share through strategies like aggressive marketing, competitive pricing, and mergers.
Step-by-step explanation:
Two major ways for a company to benefit from taking a market penetration approach would be through efficiency improvements and increased market share. A market penetration strategy aims to increase a company's sales of its current product in its existing markets. This can often involve aggressive marketing techniques, adjusting pricing strategies, improving product features, or increasing distribution channels. Companies looking to penetrate deeper into the market can do so by outcompeting rivals, which could involve mergers, where a company joins forces with another to become more efficient, acquire new product lines, or eliminate competition.
Another example of penetrating a market could involve physical positioning strategies similar to firm rivalry depicted on 'Main Street' where firms strive to become an 'intervening opportunity' by being closer to customers or leapfrogging the competitor to capture a larger customer base. To successfully enter a market with barriers such as one for a web browser, creation of distinct value propositions, innovative products, strategic partnerships, or competitive pricing can create an advantage. The key is differentiating from the competition and making sure the product stands out in terms of quality, price, or both, to attract consumers and secure a foothold in the market.