Apple makes its computers available through its own stores, its website, and some major retailers. This is an example of
multichannel distribution.
vertical integration.
horizontal integration.
tying agreements.
exclusive dealing.
The correct answer and explanation is:
The correct answer is multichannel distribution.
Multichannel distribution refers to a strategy where a company uses multiple channels or avenues to sell its products or services to customers. In this case, Apple is using its own retail stores, its website, and other major retailers as distinct sales channels. This allows the company to reach a broader audience and cater to different customer preferences, whether they prefer shopping in person, online, or through third-party retailers. By utilizing multiple channels, Apple can maximize its reach and improve customer satisfaction by offering a variety of purchasing options.
Vertical integration, on the other hand, involves a company controlling multiple stages of production and distribution within its supply chain. For example, a manufacturer might own both the production facilities and the retail outlets. Although Apple has integrated some elements of its supply chain (such as controlling its own retail stores), this scenario does not illustrate vertical integration, since it does not involve controlling all parts of the product’s lifecycle.
Horizontal integration refers to the expansion of a company into different products or services at the same level of the supply chain. For instance, if Apple were to acquire other tech companies that produce similar products, it would be engaging in horizontal integration. This is not the case here, as Apple is not expanding its offerings in the same product category.
Tying agreements and exclusive dealing refer to contractual arrangements where a company forces customers to buy a product they might not want to purchase in order to obtain the desired product or restricts the sale of products to only certain retailers. Apple’s distribution method does not match either of these categories.