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Distribution Essay

The current topic is about distribution while the main article will explain about Apple’s distribution strategy to expand their international market through innovation of strategies of the retail stores. Previously, Apple was prefers to open their retail shops around the customers’ neighborhood or busy commute places such as Grand Central stations. However, recently Apple has stated its plan to open their retail in prestigious shopping centers such as Harrods, London (Gurman 2012). On 2012, Apple also planned to open more retail stores in historical building in several countries such as Canada, Germany, and Spain.

The local government has been approved this plan (Kahn 2012). Apple even planned to expand in Brisbane’s historical building, the McArthur Chambers and Apple claimed that the store will be the Apple’s largest shops in the country (Macnn 2011). The company’s retail strategies have been dubbed as the most successful compared with its competitor these strategies are also attributed to Apple’s triumphs at branding strategy. In this case, Apple stores have been fame of its minimalist designs and clutter free zone.

The management team of Apple nicknamed these stores as ‘Significant Stores’ and admit that this is also one of their distribution strategy (LaVallee 2009). Apple has adopted

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several distribution strategies for both local (USA) and international market to attract more consumers such as low cost overseas manufacturing and shipping by establishing network with some companies in China, where the production and distribution costs are lower than US (in this case-shipping cost, then the products are stored in warehouses in USA.

The other strategies are involving the retails. Apple is well known to use independent stores, rather than use existing electronic retailers as distribution channel. Their reason to choose these strategies is to provide retail shops that are more emphasized to customer needs rather than products which lead to consumer’s trust and positive responses to the products and services and finally, the raising profits.

Based on the case description above, it is also obvious that Apples strategies can be grouped as Distribution Selection which related to any effort to choose suitable distribution channel. As stated above Apple’s distribution channels are the retail stores while for the distribution selection, Apple started to target historical building or prestigious shopping centers to attract more consumers from diverge economy classes. It is also obvious that the independent stores are integrated in these concepts of distribution channel and selection.

On the other hand, the concept of destination/significant stores that almost similar with independent stores, but more emphasized on stores’ designs and the staffs are trained to do customers services and give solutions for customers’ queries can be described as the part of managing distributions through motivation and termination aspects by training the employees (training & development). Thus, it can be concluded that these strategies are the embodiment of managing distributions through communication and control by maintaining positive operating climate and build long term relationships with customers, suppliers, and distribution employees.

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