Market penetration is a term used in the Ansoff matrix. With market penetration, as a company, you choose the strategy to enter an existing market. As a company, you are going to fight yourself into a market. The focus in market penetration in the Ansoff matrix is therefore primarily on sales and marketing. An example of a company that has opted for market penetration in the past is Microsoft, which entered the games market relatively late with its Xbox, while Sony and Nintendo were already big at it. By investing enormously in marketing, they managed to gain a place in the games market.
In the Ansoff matrix you can choose between four strategies. In addition to market penetration, you can also opt for market development, differentiation and product development.