Impact Of Apple's Retail Strategy

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In 2001, Apple introduced its retail strategy to increase customer exposure to its products. Apple stores have full range of products exclusively with well-trained sales professionals promoting product advantages to potential customers as well as in-store presentations. This strategy greatly helped Apple to enhance consumer experience. Apple, now operates more than 420 stores worldwide, generates a staggering $75 billion revenue in the first quarter of 2016.Apple retail sales contributes to about 25% of its total sales revenue. Apple Stores are one of the most important sales channel, customers interact with Apple. According to Apple, "Not just for those who are already customers but potential customers--sometimes more than 50 million customers visit through Apple's doors every three months, and half of them who visits and purchases are first-timers". The retail stores are the key element of Apple’s strategy expansions through the locations internationally. Apple has forty store openings planned and is spending $900 million on new stores in Germany, Spain, France, Australia, Canada and China (Kahn, 2012).…show more content…
Apple I-phone's final assembly partner in China, Foxconn has been reported to have bad working conditions for its employees and this can have negative impact on Apple's brand image in the minds of the consumer. "Because of large orders, Apple also has to expand its number of partners in supplying parts and that causes Apple to have more difficulty when it comes to controlling quality management" (Cho, 2012). With a focus to spearhead emerging market like India where the consumers are price sensitive, Apple is in talks with Indian government to manufacture I-phone in the country .The aim for this strategy is to bring down the cost of its products, so that the company could increase sales in Indian market which has surpassed US as the No.2 smart phone market after
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