Sprinkler strategy

The sprinkler strategy (also known as sprinkler diffusion strategy) is a market entry strategy based on the principle of diversification in which a company attempts to enter as many markets as possible in a relatively short time.

A successful implementation of the sprinkler strategy requires a high standardization of marketing activities due to the extreme difficulty implied in the simultaneous maximization of marketing activities' customization and of the number of successful market entries. Usually, a certain amount of failed market entries and withdrawals from some markets is accepted if a sprinkler strategy is used. In case a waterfall strategy and a sprinkler strategy are used together, this yields a combined waterfall-sprinkler-strategy.[1]

Advantages and disadvantages of the sprinkler strategy

Advantages of the sprinkler strategy are:

Disadvantages of the sprinkler strategy are:

References

  1. Schmid, S. (2006): Internationales Management, 5th ed., München-Wien-Oldenbourg.

Sources

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