Introducing self-driving cars as an extension of its product line characterizes which strategy for Apple?

Introducing self-driving cars as an extension of Apple's product line is a clear example of a diversification strategy. This approach involves a company expanding its operations into new markets or industries beyond its existing products and services. By venturing into the automotive sector, Apple diversifies its portfolio and reduces reliance on its core offerings, such as smartphones and computers. This move can potentially enhance the company's resilience against market fluctuations and tap into new revenue streams.

In this context, diversification is not merely about offering related products but also signifies a strategic shift to create new avenues for growth. It’s a proactive approach to innovation and future-proofing the business against competitive threats.

The other strategies listed, while relevant in different scenarios, do not accurately characterize the introduction of self-driving cars. Market penetration focuses on increasing sales of existing products in current markets, which doesn't apply here since self-driving cars represent a new category. Product development involves enhancing or adding to existing products within the same market, rather than branching into entirely new markets. Cost leadership emphasizes being the lowest-cost producer in a market, which is not the focus of this strategic move. Therefore, diversification is the most fitting strategy in this case.