Abstract
Market Penetration Strategy and Practice for Enterprise Software IndustryStudent：Chia-Yu Yeh Advisor：Dr. Yee-Yeen ChuDepartment of Industrial Engineering & Engineering ManagementNational Tsing Hua UniversityAbstractThis research explores the market penetration strategy and practice used by the leading firms in the enterprise software industry, including Oracle, Microsoft, and SAP. The main theme is on adopting penetration strategy from the large market to the small and medium enterprise (SME) market. Oracle has achieved its outstanding position in its database for large enterprise and has been a market leader. Recently, it has launched its database products in the SME market. How to use the market penetration strategy and practice to build its market success becomes the main issue of this research. This research analyzes the strategy of the main competitors Microsoft and SAP on how they push the products into the SME market successfully without eroding its position in the large enterprise market. This research also conducts an in-depth comparison of Oracle and SAP, two leading enterprise application software suppliers on how they segment and penetrate the SME application software market.Through a literature review and in-depth case study of leading firms, this research builds an operational model of market penetration strategy and practice for enterprise software business. The model sums up the main features and the differences of market penetration strategy and practices of the leading firms facing different marketing situations. It could provide a reference for software or other industries in formulating market penetration strategy and adopting applicable practices facing a variety of market segmentation possibilities.Keyword: Enterprise Software Industry; Market Penetration; Marketing Strategy