Distribution Approach

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There are two high-level types of distribution channels, direct and indirect. In the direct distribution channel, goods are moved directly from the Producer to the Consumer. In the indirect distribution channel, the producer will meet consumer demand through third -party wholesalers and/or retailers. Direct channels produce short supply chains, indirect channels produce long chains.
Research and report on two large producers, Costco and Apple, and describe in detail which distribution approach each company uses — direct, indirect, or mixed – for at least two products in each company.

 

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Apple is a well-recognizable brand with a bright identity expressed in innovation and simplicity. By continuously developing ideas, Apple offers the greatest products: for example, iPhone is the first smartphone with touchscreen technology. How do millions of people all over the world get their iPhones? Does Apple use direct or indirect distribution? Both. The company sells products in official Apple Stores as well as departments of big retail chains and Internet channels. Apple Inc. sells iPhones through a network of affiliated stores – so-called Apple Stores and retail stores of other companies. Also, there are the Internet channels of Apple Stores. Thus, the company uses both direct and indirect distribution channels.

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