Apple Inc.’s Exclusivity Policy and Distribution

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The company’s exclusivity policy means that Apple has a constricted distribution system. The company selects approved vendors of its products carefully, for example. This section of Apple’s SWOT results reveals that a sole strategy promotes product distribution but limits its reach on the market. Moreover, Apple has the shortcoming of having most of its sales revenues from the high-end market because of the premium price plan (Hwang et al., 2019). This market consists of mid and high-customers. Because of the relatively high price, low-class customers, which are the majority of the world’s buyers, cannot buy Apple products. So the company needs to change its pricing and distribution strategies to limit the restrictions or vulnerabilities within its business to expand its market cloud.

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Apple should expand its global stores to guarantee that its customers can access Apple products regardless of their geographical location. All marketing strategies have a significant part to play, as effective distributors can maximize products’ availability to improve sales. Apart from the company-owned retail outlets and additional authorized actors, Apple implements multiple distribution channels to distribute its product and services to its target customer. Subject to respective artifact portfolios and kinds, Apple’s strategy will use different channels. In addition, offline and online Apple distribution networks cover great convenience in buying and maximizing sales opportunities. However, although the unique distribution system is expensive and restricts access to Apple products, Berninger (2018) argues that this exclusivity enables Apple to deliver high-quality products and enhances the customers’ buying experience. Thus, the multinational firm continues increasing its number of stores globally to ensure that it beats its significant competitors such as Samsung.

Apple’s direct distribution channels heavily invest in providing the entire packages of services and products offered by other manufacturers with related products and services. Retail is a significant channel at Apple and focuses on brand promotion, customer relations, and global market approach with online and offline sales points. Apple’s robust direct distribution network has been established through the amalgamation of contemporary physical Apple outlets, manageable websites, and online shops, as well as efficient, uninterrupted sales personnel.

Apple invests enormously in undeviating dispersal, with returns from those canals accounting for only about 30% of the total (Berninger, 2018). The strategy’s consequences are to offer an outstanding customer support and customer education experience, focusing on improving brand awareness and management of the Apple brand.

The Apple Syndicate needs to amend its exclusivity policy to ensure that it boosts the distribution of its distinct and high-quality products. As a result of its exclusivity policy, Apple Inc. has a limited distribution network. The SWOT analytical framework sees this strategy as a limiting market reach factor, making consumer electronics not readily available in all fields. The SWOT analysis framework despite special convenience such as substantial regulators of Apple’s product circulation, this weakness exists. The technology company also weakens its sales reliance on high-end segments because of its premium pricing strategy (Hwang et al., 2019). Thus, other than increasing the number of Apple stores, the multinational enterprise needs to introduce policies that would enable them to form partnerships with independent retailers in the various countries, making it easier for the global customers to access the merchandise at their convenience.

The international business should consider indirect distribution to ensure that it maximizes its profit. Although Apple’s direct supply systems are demanding immense investments in economics and human assets, Apple’s indirect distribution networks’ branding has consequently benefited. On the other hand, Apple’s indirect dissemination channels are closing the slit in some marketplaces in which Apple’s direct delivery setups continue to improve. Apple’s indirect distribution comprises cell phone carriers, licensed retailers, and resellers from third parties. Apple is building an international reliable indirect retail network with authorized dealers, Wholesalers, retailers, most of whom have Amazon and other e-coms platforms. Other than the syndicate having a retail store system it owns, Apple as well as a tactical bargain with telecommunications companies such as Verizon or AT&T to apply the establishment’s telecommunications yields and services for its valuable integrated customer service (Berninger, 2018). Thus, Apple, Inc. needs to incorporate direct and indirect marketing approaches to boost its distribution goals.

Apple, Inc. should explore new product lines to meet the global market’s diverse expectations and interests. The demand for iPhones is always continuing to grow, boosting the corporation’s sales. This buyers’ behavior is an enormous chance to beat its significant competitors such as Samsung. In the next decade, the use of the Internet and e-commerce will increase significantly. To take advantage of this opportunity, Apple can produce new products and services. Some examples of options that the company has seized are Apple Music, Apple Watch, and Apple TV (Bhoot, 2017). Notably, the company needs to ensure that all the introduced items are available on the various online platforms. Apple’s products can be obtained from several online shopping venues, including eBay, but Amazon.com is its official website. Additionally, Bhoot (2017) emphasizes that buyers have the option of making payments via credit cards, cash, and other services. As niche product reaches the general population with fewer barriers, e-commerce has made things easier.

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Establishing an excellent communication network would ensure that the technological enterprise meets its distribution goals. This international company depends on the roles played by each key player at every step of their distribution channels. Business people can better understand their goals and general objectives through good communication with clients or stakeholders to examine and adapt how they support them (Lim & Greenwood, 2017). This concept enables firms to plan capital and identifies advancement opportunities by highlighting improvement and focus areas (Hwang et al., 2019). Thus, Apple, Inc.’s effort to establish excellent relationships will make the backers understand the goal-oriented business’s main goals and culture and understand the different expectations and interests of their target customers. Moreover, the ICT advancement made it easier for the main actors to execute their distinct responsibilities and communicate their challenges with their peers to address them swiftly.

In conclusion, Apple needs to invest a significant amount of its limited resources in facilitating its exceptional distribution channel theory to enhance marketplace coverage and nurture the produces’ availability for optimizing its profits by the efficient combination of the direct and indirect distributor. In addition, Apple has a strong brand reputation worldwide thanks to the various direct or indirect distribution channels combined with pre-sales and post-sales services that include support for funding, maintenance, and guarantees. Notably, although the transnational corporation remains competitive for the limited market, implementing the recommended approaches would guarantee an expanded customer cloud. This aspect will ensure that the American-based business realizes increased output from their unique distribution strategies.

References

Berninger, J. (2018). Forecasting the Time Series of Apple Inc.’s Stock Price (Doctoral dissertation, UCLA).

Bhoot, G. (2017). Music Industry Sales: How streaming services such as Spotify, Apple Music and TIDAL affect album sales.

Hwang, H., Colyvas, J. A., & Drori, G. S. (Eds.). (2019). Agents, actors, actorhood: Institutional perspectives on the nature of agency, action, and authority. Emerald Group Publishing.

Lim, J. S., & Greenwood, C. A. (2017). Communicating corporate social responsibility (CSR): Stakeholder responsiveness and engagement strategy to achieve CSR goals. Public Relations Review, 43(4), 768-776.

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BusinessEssay. (2022) 'Apple Inc.'s Exclusivity Policy and Distribution'. 24 June.

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BusinessEssay. 2022. "Apple Inc.'s Exclusivity Policy and Distribution." June 24, 2022. https://business-essay.com/apple-inc-s-exclusivity-policy-and-distribution/.

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BusinessEssay. "Apple Inc.'s Exclusivity Policy and Distribution." June 24, 2022. https://business-essay.com/apple-inc-s-exclusivity-policy-and-distribution/.