Market penetration rate measures a company's current revenue as a percentage of total addressable market, indicating how much market share has been captured versus remaining opportunity. Low penetration suggests significant growth runway, while high penetration may signal market maturity or need for adjacent market expansion.

Penetration analysis helps prioritize growth strategies: companies with low penetration typically focus on customer acquisition and market awareness, while those with high penetration often pursue market expansion, product diversification, or customer lifetime value optimization to sustain growth momentum.