Apple Channel Strategy in Singapore
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 emerging Asian markets, Apple recognises the need to enter into these new geographical areas. Based in California US, the vast geographical distance has made it expensive for Apple to use a direct distribution method to open up a flagship store in Singapore. Moreover, The Singapore market is unique and requires a different managerial expertise. Therefore, to enter into the Singapore market, Apple has used the multi channel strategy to develop its channel distribution. Apple believes that by using multiple intermediaries, its channel members will be able to do a better job in customizing to Singaporeans wants and needs, as they understand the local market better. In order to be successful in building its brand presence in Singapore, Apple has carefully and selectively chosen suitable distributors, retailers and service providers whose firms’ objectives and strategies are consistent with Apple’s. APPLE SINGAPORE CHANNEL STRATEGY & DESIGN Selling highly standardized products, Apple Singapore distribution channel is able to go through a relatively wide and long distribution structure. Power Balance Being a huge company with the necessary resources, Apple has a high reward power
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