Channel Conflict at Apple
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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The Trouble Begins
MACadam Computer, Inc. (MACadam), located in San Francisco, was a long time authorized Apple reseller. Tom Santos, (Santos) president of MACadam, complained that ever since Apple had started its own stores, it had become difficult for him to procure iBooks with CD-rewritable/DVD combination drives from the company...
The Conflict Gathers Momentum
On March 31, 2004, Apple resellers started a website (www.TellOnApple.org) which contained articles regarding their conflict with Apple that had been published in various magazines and newspapers. The site was also intended to collect and share any information pertaining to Apple's unethical practices even from customers and employees...
As a part of its overall growth strategy, Apple continued to open more retail stores. By the end of April 2005, Apple had about 103 retail stores including three stores outside the US - in London, Tokyo, and Osaka...
Exhibits I: Macintosh Advertisement -'1984'
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