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Internationalization Strategies
There are two well-known market entry strategies. The Waterfall Strategy where each market will be entered step by step and the Sprinkler Strategy where a company enters all suitable markets at the same time.
| Waterfall Strategy | Sprinkler Strategy | |
|---|---|---|
| Advantages | Lower cost of resources | Exploitation of (short) product life cycles for successor product generations and high development costs |
| Lower risk | Creation of market barriers for competitors (e.g. image advantage, exchange costs) | |
| Smoothes revenues (product life cycles) | Exploitation of economies of scale | |
| Coordination of interdependencies between country markets | ||
| Disadvantages | Premature termination of the program if little success in initial phases | High use of resources and risk |
| Entry of competition (product imitations) | Concentration of revenues | |
| Coordination efforts for interdependencies between country markets |
