One of the most difficult and infrequent decisions made atomic number 18 those regarding place or dispersal transmit. Some of the key issues that be discussed and form the basis of distribution channels include transportation, raise processing, memorial management and location (Schneiders, 2011). The establishment of efficient channels can take a lot of time and happen upon (Bidgoli, 2010). The distribution channels are often influenced by formal and informal contractual relationships especially in cases where channel partners keep asset specific investment (Bidgoli, 2010). For this reason, firms often avoid risks where decisions concerning alteration of distribution channels are concerned (Bidgoli, 2010), because it is often practicable that channel partners can retaliate thus causing monumental difficulty to the firm in question. This factor is the reason merchantman the decision by Apple not to sell products at once to the consumer. The decision to avoid direct sales is influenced by Apples aspect on the role of the retailer in relation to merchandising, inventory management, and customer service, products demos, cross selling and up selling (Bidgoli, 2010). The achievement of this approach with Apple has seen some of the best e-commerce sites make attempts at replicating these functions with varied success.
This approach to marketing is wise given that legion(predicate) electronic companies have failed at marketing due to their rivet on technology and lack of knowledge in retail (Bidgoli, 2010).
Nevertheless, failure to effectively consider the best approach to distribution may have caused Apple significant loss of business. For example, if in the case of iPods, Apple implemented a hybrid schema of retail that allowed direct sales of iPods but sale of computers by means of established retail channels (Bidgoli, 2010). Such a move may most likely have had a negative effect on channel partners resulting from the loss of a lucrative product and in turn may have resulted in their abandoning...If you want to get a full essay, order it on our website: Ordercustompaper.com
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