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HOW IT ALL STARTED??
Apple was founded on 1st April 1976 and incorporated on 3rd January 1977.
The Apple I , its first offering was better then other machines because:
It was priced lower than other computers available at the time.
Had fewer parts, &
Was marketed to only individuals with an interest in computers and electronic.
In its opening year the sale revenue was about USD 774,000 an impressive start.
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HOW THE APPLE GREW
PRODUCTS LAUNCH FEATURES RESPONSE
APPLE I
1977 MOStek 6502 processor.
TV as display unit.
Big Hit
APPLE II
1977
(Upgraded in
1978)
MOStek 6502 processor. Color Graphics.
Audio cassette drive for
storage with 4 KB RAM
Later upgraded with floppy
disk drive & 48 KB RAM in
1978.
Raked in about
US $ 139 million
within first 3 yrs.
of its launch.
APPLE III
1980
Text & Graphics
128 KB RAM
Updated System Software
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LISA
Type: Businesses
Machines
Launched: 1983
Innovative features
like:
Hand held mouse
GUI Primarily owing tohigh cost.
MACINTOSH
1984
128 KB Memory
32-bit processor
Mac OS that could
run on all applecomputers.
Personal Users
Big Corporations
iMAC SERIES iMAC -1998
iMAC G5 -2004
iMAC Mini -2005
Internet MAC
Designed primarily
for new users.
Low Cost.
iPOD & iTUNES 2001 followed by
iTunes in 2003 &
iPOD shuffle in 2005
10 GB storage
1.8 Hard Drive
iPOD shuffle had
flash memory.
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Reasons for apple opening its own
retail stores
Increase market share More control over sale of its products
Highly competitive PC market
Better buying experience Ambience and presentation of products
Building customer base and loyalty Better understanding of customer needs
Problem assessment (Genius Bar)
Brand awareness
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Channel conflict resolution
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Concerns of Resellers
Prices were lowat apple retail storespredatory practices(discounts)
Difficulty in procurements of new apple
products Apple shipped new models to its
own stores first
Apple salesmen used to convince customers
to buy onlyfrom apple stores.
Faulty product return policy
Customer data from resellers was used by
Apple to approach them directly
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Price Variation
1547
2092
1287
2173
966
1117
0 500 1000 1500 2000 2500 3000
iMac
Titanium
Powerbook 12 inch
PowerMac G4
eMac
iBook
Chart Title
Apple retail stores
Independent Resellers
Minimun Advertised Price (US$)
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Apples Policies towards resellers
Since a major chunk of their revenue came from its
own stores it definitely gave preference to them
Removal of middlemen to get more profits and build
a bigger customer base
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Conflict Resolution
Reseller
Customer experience
Discounts and freebies
Adequate stock of accessories
Better product presentation
and promotion
Better training to salespersonsto resolve customer doubts
Apple
Ensure Adequate inventorylevel
Discounts offered should beidentical
Warranty and product returnpolicy should be changed
Discriminatory policies shouldbe changed in revisedagreement
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