Apple Ansoff Matrix
Apple Ansoff Matrix is a marketing planning model that helps the multinational technology company to determine its product and market strategy. Ansoff Matrix illustrates four different strategy options available for businesses. These are market penetration, product development, market development and diversification.
Apple Ansoff Growth Matrix
Within the scope of Ansoff Matrix, Apple uses all four growth strategies in an integrated manner:
1. Market penetration. Market penetration refers to selling existing products to existing markets. Existing market for Apple consists of its global operations divided into five operating segments: Americas, Europe, Greater China, Japan and Rest of Asian Pacific. The tech giant operates more than 518 retail stores in 25 countries and regions.[1]
Apple engages in market penetration strategy via effective application of marketing strategy. Apple’s ecosystem of products and services also plays an instrumental role in pursuing market penetration strategy with high level of efficiency.
2. Product development. This involves developing new products to sell to existing markets. New product development in a regular manner is one of the core growth strategies pursued by Apple. Each new product or service by Apple nicely fits within its ecosystem and serves to further strengthen the company ecosystem.
Moreover, the multinational technology company regularly introduces updated versions of its existing products and services and introduces totally new products. The company’s investments on research and development for new products has increased from USD 0,78 billion in 2007 to USD 25,3 billion in 2023.
3. Market development. Market development strategy is associated with finding new markets for existing products. This strategy has been adapted as the main growth strategy by Apple. Specifically, the world’s largest IT company by revenue focuses of emerging economies in Asia as attractive markets for long-term perspective. The multinational technology company appeals to local culture and sentiment when developing marketing strategies for new markets.
Despite intensive pursuit of market development business strategy, Americas segment comprising South and North America remains the biggest source of revenue for Apple and in 2022 the company generated more than 43% of revenues in Americas segment.[2]
4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the riskiest strategy. Up to date, Apple has engaged in diversification business strategy occasionally. At the same time, not all diversification attempts by iPhone maker have proved to be successful. For instance, despite pandemic-fuelled boom in video streaming industry Apple TV+ has ranked low, well below Netflix, Amazon Prime Video, Hulu and even NBC streamer Peacoc.[3] Taking into account the global market saturation for iPhone, which is the largest source of revenues for Apple, the company is expected to embrace diversification strategy in the short-to-medium term perspective.
Apple Inc. Report contains the above analysis of Apple Ansoff Matrix. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, business strategy, organizational structure and organizational culture. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate social responsibility.
[1] Annual Report (2022) Apple Inc.
[2] Annual Report (2022) Apple Inc.
[3] Peterson, M. (2021) “Apple TV+ ranks low in streaming industry surveys despite market boom” Apple Insider, Available at: https://appleinsider.com/articles/21/01/22/apple-tv-ranks-low-in-streaming-industry-surveys-despite-market-boom