Apple's Retail Attempt

In 2001, apple Computer?s CEO, Steven P. Jobs, had an idea to open stylish Apple retail stores throughout the country. He felt that customers would be more apt to buy Apple?s pricey, high-spirited computers if they had a conducive environment in which to shop. In addition, he reasoned that exclusive stores would give Apple an opportunity to transmit additional Apple products and operate.

Though a number of Apple?s competitors had success teemingy attempted retail outlets, Newsweek reported that David Goldstein, chairperson of Channel Marketing Corp., predicted this idea would fail within 2 years. With or without retail stores, Apple Computer sold sink of the line computers at a higher cost than their competitors, dingle and Gateway. The Newsweek article expressed a concern that shoppers would not obtain a computer system that cost so some(prenominal) more than the local competition, regardless of the shopping conditions.

A min concern was that Mr. Job was targeting large metropolitan areas. Such true estate would mean higher lease expenses and salaries as rise as escalated startup costs. Apple would have to sell, check to Goldstein, just about fifty percent more than their competitors to simply survive. There were a number of obstacles to the store?s success. The failure of these stores was inevitable according to the Newsweek article.

Apple?s market share was low and travel quickly.



Jobs? overall goal was to increase profitability by increase Apple?s market share. The idea was that opening these stores would seduce another way for consumers to purchase Apple?s products and services which would contribute to their competitive edge. His plan to open 110 stores was raptorial and risky. Back in 2001, while Job was initializing this plan, his role of attractor was evident. He had to motivate everyone within the company to accept this excogitation and support it through the role...

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