Topic > Apple's Channel Strategy - 1176

Channel StrategyAn international marketing channel means an association of individuals and procedures through which goods pass to reach their ultimate goal. An operational international marketing channel allows organizations to influence their potential consumers at an economical price and in a rational time frame. The distribution channel is the expression used to define the method by which goods or products are essentially distributed from the place where they are produced to the place of the final customer. The organization's distribution strategy must be effective in order to achieve the organization's objectives related to gaining market share of its products. The international marketer faces the challenge of developing a distribution strategy due to the full range of substitutes to develop an effective, reasonably priced, high-capacity international distribution system (Cateora, Gilly, & Graham, 2013). The development of the correct price of goods can be the main element in the victory or disaster of goods. Distribution ChannelsThe distribution channels presented in international markets are not too dissimilar to the channels in our nation, the United States. The following illustration shows the distribution flow: Illustration 1: International Channel Distribution Alternatives (Carvens & Piercy, 2012, p. 284) As shown, the arrows illustrate that there are numerous possible channel networks connecting the producers of the product, intermediaries, agents and consumers. However, it is important to understand, as indicated by Wren (2007), “The inference to be drawn is that companies will choose different strategies under different channel conditions” (p. 84). The conditions vary from country to country where the product will be sold. Businesses need to be aware of rising prices. To attack price escalation the multinational corporation (MNC) marketer must