Alberto Zanco

1. Product overview & corporate strategy2. Distribution channels & strategy3. Conclusions & recommendations

1. Product overview & corporate strategy

Not only Personal Computers…

…but also Portable Devices

Product Strategy

The company leverages its

unique ability to develop its OS,

hardware, application SW and services

Targets

Brand management

Challenges to this strategy

Feature model evolution

2. Distribution channels & strategy

Apple’s distribution structure

B2B Channels

Not sold through direct sales force due to small volumeHigh level of serviceChannel with high level of control from Apple

Need for consultancy and assistanceCrucial consultant roleUse in educational environment also has a promotional dimension

Shorter channel due to the active role of Apple in the design of this systemsOn-line services for companies similar to DellGovernments buy mainly through tenders

B2B Channels

Flagship stores95% of customers don’t consider Mac

Serving local communitiesZero investment from AppleHigh quality experience

Very problematic, due to inexistent purchasing experienceSelected retailers only (best Buy)Separate space, serviced by Apple staff

With one store acce

Multichannel shopping process

NeedRecognition

Search

Comparison

Choice/Purchase

Outcome

Web

Store

Web

Store/Reseller

Web

Store

First time customerApple customer A Apple customer B

Channel overview

Advantages Challenges

Multichannel shoppers are more valuable

Multichannel shoppers are more loyal

Multichannel strategy strengths the brand

Needs coherence Database

management is crucial

Cooperative corporate culture

Apple corner at Best Buy

Apple Premium Reseller

Apple On-line Store

Apple Store

Why Apple jumped in the retail business? Low exposure Bad purchasing experience Customers not able to perceive the value

“Within [Sears] the computers invariably had missing keys, shipping boxes were crammed into the area, merchandise was askew, and software was poorly displayed. Even worse, CompUSA employees were generally completely unknowledgeable about Macintosh computers and related gear. It was a very discouraging experience.”An experience from an Apple buyer posted on the Forum of

the website ifoapplestore.com

Apple’s goals

Retail strategy SWOT analysis

Retail turnover growth compared with overall turnover

Apple Store vs. Luxury Retailers

3. Conclusions & recommendations

Conclusions & Recommendations The hardware market will be

increasingly undifferentiated Devices can be used as Trojan

horse for introducing standards (iTunes)

A migration towards services could be inevitable

Conclusions & Recommendations

Product oriented Service oriented