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C.C.D. of Amazon.com and AppleT SmithUnit 10 Assignment 1-Comparative Channel Design of Amazon.com and AppleBUS4031–Marketing Sales & Channel ManagementDecember 19, 2014Mary CattapanCapella University1
C.C.D. of Amazon.com and AppleTable of ContentsIntroduction Overview of Amazon.comOverview of AppleComparison of CompaniesSWOT of AmazonSWOT of AppleChannel Strategy Gap AnalysisChannel OptimizationChannel Conflict at Amazon.com & AppleSolutions for the future; Managing the Channel PowerAt Amazon At AppleSummary References2
C.C.D. of Amazon.com and AppleIntroductionAmazon.com and Apple are two companies that are well known to the consumer. They offer products that consumers want but the process that it takes for the consumer to get the product takes strategy. The channel design between these two companies has similarities and differences. Amazon.com is known for being revolutionary in e-commerce. However, Apple is known for their innovation in technology and channel distribution. In the beginning Amazon.com wanted to be the best online catalog business but the business model was not right to do so. Amazon.com was competing against Barnes and Noble, which is a well-known bookstore retailer. Apple was initially a company that produced personal computers but since theinnovation of the iPod, iTunes and other iPhone, iPad and many other products the company has been a trailblazer for technology and the way it is being used today. This paper will analyze the two companies channel design and give a summary on if the channel design is optimal.Overview of Amazon.comAmazon.com is based out of Seattle, Washington. It started out as a virtual book seller but now Amazon.com is so much more. It can be compared to Wal-Mart but only online becausethey sell books, music, toys, jewelry, clothing, games, tools, and household items all in one place. The company was founded in 1994 by Jeff Bezos but did not go online until 1995. Amazon.com wanted to be a company that “is the Earth’s most customer centric company where people can find and discover anything they want to buy online” (Amazon.com). People have the ability to discover Amazon.com online and now through other devices besides a computer. These other devices are on smartphones and tablets. While there is no physical brick and mortar location there are millions of products available to the consumer’s fingertips. 3
C.C.D. of Amazon.com and AppleOverview of AppleApple is one of the world’s leaders in innovation of computer software and smartphone technology. Apple not only creates their products but they sell them as well. Some of the products that the company sells are iPad tablets, iPhone devices iMacs, iPods and other accessories. The Apple iPhone was launched on June 29, 2007 at AT&T. The demand for Apple products has not gone decreased since this time.