2.0 CHALLENGES AND SOLUTION
2.1 LIMITED DISTRIBUTION NETWORK
One of the distribution challenges that faced by Apple company to expand into
emerging markets such as China, India and Africa are the company has a limited distribution
network due to the company’s policy of Exclusivity. Apple’s aim is to increase it perceive
value and the quality of their transaction. This situation had caused the company’s market reach
being limited. The company will pick and choose carefully the retailers that will market and
sell it products only. The customers can only buy the Apple’s products through the authorized
sellers such as Apple Store and through the company website. With this policy, Apple may
cause its products to have a high demand in the markets. In 2019, there was a report shows that
the company only have 470 distribution centres around the world.
2.2 SOLUTION
In order to solve the limited distribution network challenge that faced by Apple
company, the solution can be taken to solve the challenge is to increase the trusted distribution
channel. As we know Apple always distributes its product by itself and they seldom use other
third parties to sell their products to the customers but only uses their own website and Apple
Stores to sell their products. This may cause demand for the products higher than supply when
Apple company expanding into emerging international markets such as China, India, and
Africa. This situation can be solve by increasing the trusted distribution channel in the
international markets so that the product always enough to fulfil the demand of the market.