Final answer:
Comfort Shoes Inc. uses a market development strategy by expanding to new regions based on their product's popularity. This strategy is aimed at increasing market presence and revenues by targeting existing products to new market segments.
Step-by-step explanation:
Comfort Shoes Inc.'s decision to expand operations to other regions based on the popularity of their shoes at retail stores in New York represents a market development strategy. This expansion strategy involves a business targeting its existing products to new market segments or geographical areas. It is distinct from other growth strategies such as product development (introducing new products to existing markets), market penetration (increasing market share within existing markets), and diversification (expanding into new markets with new products, similar to what a conglomerate might do). By expanding geographically, Comfort Shoes Inc. hopes to capture a larger customer base and increase its revenues.
The logic behind expansion can be compared to the competition between two firms in a small town (Firm A and Firm B). If each firm is trying to capture the other's market share, they may engage in strategic relocations. Similarly, Comfort Shoes Inc. is seeking to enhance its market presence by moving into territories where there's a potential customer base for orthopedic shoes.