Market Development . Apple uses market development as the least significant of its intensive strategies for growth. Market development involves creating new markets for new products or entering entirely new markets. This intensive growth strategy is similar to market penetration, but market development focuses on establishing presence in new markets. Apple applies this intensive growth strategy by authorizing new sellers in markets where the company does not have any presence yet. Thus, this intensive strategy applies mainly in developing markets. Also, Apple implements the market development intensive growth strategy through novel products. For example, the company innovates to offer goods like Apple Watch, which is an entirely new product line for the firm. Through Apple Watch, the company develops its reach in the smartwatch market. This intensive growth strategy agrees with Apple’s generic strategy of broad differentiation by expanding the company’s market reach. Such generic strategy requires that unique products should be offered to different market segments, which the company reaches through market development.
This year Apple not only released the usual limited number of iPhones but of those there were three colour variants of the iPhone 5s. The gold colour was extremely limited in supply making it a talking point and creating a demand even within the subset who were lucky enough to get an iPhone before they sold out. Furthermore, Apple restricted SIM free iPhone sales to themselves. So, as things stand, mobile providers in the UK are not allowed to sell PayG iPhones. This means that anyone on a SIM only contract or will need to visit their nearest Apple store if they want a new iPhone.
Apple Stores are the highest revenue retail operation out there. The majority of staff that Apple has added in the last 10 years are retail staff. The stores are brilliantly designed and located and do precisely the opposite of almost every other retail experience. They don’t apply any of the retail tricks to encourage people to buy. They focus on browsing and exploration. When other retail operations are trying to minimize the number of staff, Apple maximizes theirs. Go to a typical mall with an Apple Store half an hour before closing on a weeknight. Odds are, there will be as many staff working the Apple store as every other store in the mall combined. The stores are designed to make you happy to be there, not to extract money from you (which they actually do better than any other store out there).