Channel Conflict at Apple
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Case Details:
Case Code : MKTG108
Case Length : 19 Pages
Period : 1976-2005
Pub Date : 2005
Teaching Note :Not Available
Organization : Apple Computer, Inc.
Industry : Computers
Countries : United States of America
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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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Excerpts
From Apple to Lisa and Macintosh
In 1980, Apple III was launched with eight applications, including a text and graphics feature. It was priced between US$4,340 and US$7,800, depending on the configuration. However, technical problems resulted in its temporary withdrawal from the market. The problems were rectified and Apple III was re-launched in 1981...
Exit of Jobs and the Decline of Apple
In the meanwhile, Jobs' management style attracted criticism from various quarters including the board of Apple. The board members were not happy with Jobs for spending most of the company resources on developing Macs...
Re-Entry of Jobs
In late 1996, Apple's CEO Gil Amelio (Gil) convinced Jobs to work as an 'informal advisor' at Apple, with no contractual commitments...
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The Introduction of iPod
In October 2001, Apple forayed into the digital music market by launching iPod, a hard drive based music player. iPod had 5 GB of storage space that could hold around a thousand songs and was superior to all the contemporary flash memory -based players that could store only around 30 songs. It was smaller than most of the tape decks and used a 1.8" hard drive...
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The Apple Online Store
Traditionally, Apple products were sold through a network of authorized Apple resellers, retail chains like Sears and Roebuck & Co (Sears), and a few large electronic resellers like MacMall, MacZone and Best Buy. Even corporate accounts were managed by these channel members. In mid-1997, Apple severed its relationship with Sears and Best Buy due to poor sales support. To increase its market share and sales, Apple opened a 24-hour online store called the Apple Store (http://www.apple.com/store), on November 10, 1997...
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Apple Goes Retail
During the first half of 1999, Apple's efforts to make it big through its online store induced speculation on whether the company might soon open its physical stores to reduce the involvement of middlemen and give a boost to its sales...
Excerpts Contd...>>
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