Distinguish Between a Waterfall and a Sprinkler Foreign Market Expansion

Question

Examlex · Accepted Answer

The Answer is A waterfall foreign market expansion strategy involves entering one foreign market at a time, focusing all resources and efforts on that market before moving on to the next. This approach allows for a more in-depth understanding of each market and the ability to tailor strategies to specific cultural and economic factors. It is a slower and more cautious approach, but can lead to more sustainable and successful market entry.

On the other hand, a sprinkler foreign market expansion strategy involves entering multiple foreign markets simultaneously or in quick succession. This approach allows for rapid market penetration and can help spread risk across multiple markets. However, it also requires significant resources and may not allow for the same level of customization and adaptation to each individual market.

In summary, the main difference between the two strategies lies in the pace and depth of market entry. The waterfall approach is more focused and deliberate, while the sprinkler approach is more rapid and widespread. Both have their advantages and disadvantages, and the choice between the two will depend on the specific goals and resources of the company.

Distinguish Between a Waterfall and a Sprinkler Foreign Market Expansion

Definitions: