Apple Channel Strategy in Singapore

2295 WordsSep 11, 201010 Pages
INTRODUCTION Apple Inc. designs, manufactures and markets a wide range of personal computers, computer software, and portable music devices. Some of these Apple products include the Macintosh, iPods as well as the iPhones. Apple’s strong value chain is one of the reasons for its success today. Its’ efficient and strong value chain has allowed the company to expand globally with a strong presence in 102 countries. Furthermore, Apple has joined in the process of reintermediation, adding an online store and more resellers into its distribution channel in order to reach more consumers and to boost its sales and profits (Kevin L. Webb, 2001). Fueled by globalization and opportunities presented in the…show more content…
Therefore, should resellers (especially the ARs) gather/hear poor responses towards the new product, it is likely that they will not want to carry the new product. This will decrease Apple chances of selling it through the resellers, reducing the reach to more consumers. Possible Conflicts between Apple and Resellers Role Incongruities To become an Apple APR, it has to follow the strict policies stated in the legal contract before the partnership. Should any of the APRs deviate from its current role (For e.g. not compiling with Apple intended store layout and try to change to its own layout), it would result in a conflict. Resource scarcity The main features of the Apple online store are free shipping, iPod engraving, guaranteed new stocks and the option for being able to customise his/her personal computer. These attractive features are great deals for many. However, with Singapore having a small pool of consumers, setting up the online store would mean snatching away potential customers from the resellers. Not only that, there has been an increase in number of resellers here in Singapore. Resellers would ultimately be unhappy over the increase in competition thus, conflicts will sure to arise. Goal Incompatibilities Apple would want its channel members to sell as many of its products as possible. However, should a competitor’s product be more popular, its ARs would naturally try to sell more of the competitor product in

More about Apple Channel Strategy in Singapore

Open Document