Caselet Code : CLSDM034
Publication date : 2005
Subject : Sales and Distribution Management
Industry : Hardware
Length :
 5 Pages
Price :  Rs. 100 (Detailed Pricing Info)

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Abstract

Apple Computer started its own retail stores in 2001. At the same time, the company followed channel strategies that were aimed at eliminating the traditional resellers and promoting the company-owned stores. This caselet discusses these different methods and their impact on the resellers. It also discusses the lawsuits filed by resellers against Apple resellers. It also discusses the lawsuits filed by resellers against Apple.

Issues:

» Importance of channel relations
» Impact of channel conflic

Key words:

Apple, Macintosh, Reseller, Midnight Party, Retail stores, Lawsuit, Discount, Online, Contract, Agreements, iPod.

Questions for Discussion:

1. "Our strategy isn't to put our resellers out of business, but to work side by side with them." According to you how far was Apple successful in working in tandem with its resellers?

2. Although Apple was successful in its venture with company outlets, this move had its own downside. In this context, explain the problems faced by Apple despite achieving a turnover of US$1.2 billion in 2004 through its stores.