A penetration policy is appropriate when there is:

Question

Quizplus · Accepted Answer

A penetration policy is appropriate when there is a strong threat of imminent competition, as it allows companies to gain market share quickly and protect their position. Additionally, if there is an opportunity for a substantial reduction in production costs as volume expands, a penetration policy can be effective. Inelastic demand is not necessarily a factor in determining the appropriateness of a penetration policy.

A Penetration Policy Is Appropriate When There Is