By Rita Chattaraj - October 12, 2012 | Tickers: AMZN, AAPL, GOOG | 0 Comments

Rita is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.

The first thought which comes to my mind when I hear the phrase Good things come in small packages is the iPad Mini. Just like every other fan, Im eagerly waiting for Apple (NASDAQ: AAPL) to launch the younger sibling of the superbly designed iPad. The web is flooded with leaked photos of the Mini and even the rumor mill has started rolling. According to the latest rumors, the device can be expected to hit the streets sometime in late October, just ahead of the biggest holiday season of the year.

Though many analysts are suggesting that iPad Mini will not face much success and will be a pointless device, I beg to differ. I believe the iPad Mini will be a huge hit and will repeat the success story of the iPad. The following are some of the reasons that explain why I feel the Mini will be good for Apple.

A brilliant growth strategy

The iPad is not a new-to-the-market product anymore. Tablets have gained huge acceptance worldwide and needless to say, the iPad is the undisputed champion in the space. So, how can Apple carry on with expanding the iPad user base? The answer lies in the Ansoffs Matrix, a hugely popular tool among corporate strategists. Igor Ansoff, also known as the Father of Strategic Management, presented this matrix to present alternative corporate growth strategies by establishing links between products and markets. The following is the image of the matrix.

(Image Source: taydeaburto.com)

According to the matrix, if the product is an existing one and even the market is an existing one, corporations must aim at market penetration as that would be the best strategy to expand. Apple is doing exactly what Igor suggested. By introducing a smaller iPad, Apple is attempting to target a different stratum of the consumer market and thus increase its overall market share. Initially, under the leadership of Steve Jobs, Apple was hesitant about the need of smaller tablets. However, after the recent success of 7-inch tablets from peers such as Google (NASDAQ: GOOG) and Amazon (NASDAQ: AMZN), Apple has realized that there is a market for the smaller device and now aims to harness the benefits of the same.

Huge market waiting for the Mini

View post:
Good Things Come in Small Packages