Channel Strategy

Topics: Retailing, Personal computer, Online shopping Pages: 2 (336 words) Published: December 3, 2012
Before: Personal Computers Distribution

n Channels
Before: Personal Computers Distribution

n Channels

The personal computer segment of consumer electronics was greatly impacted by the internet revolution. Before the internet revolution, consumers would purchase a personal computer in a retail establishment. The manufacturer had different distribution channels to ship the PC to the retail store. From the channel map above, you can see that consumers could buy their personal computer from either a big retailer, manufacturer’s storefront, or an independent specialty retailer. Consumers had to travel to the different retail outlets to find a personal computer that met their needs and price range. Examples of big box retailers would be Wal-Mart and Best Buy and Manufacturer storefronts would be stores such as Gateway, Sony, etc. Additionally, consumers relied on retail employees for specific product questions. The only product reviews that consumers had access to were retail employees, Consumer Reports Magazine, or word-of-mouth.

After: Personal Computers Distribution Channels
After: Personal Computers Distribution Channels
Since the creation of the internet, consumers have been given almost all the information they need in the personal computer market. In 1994, online banking developed. Next, Amazon, and EBay were created, growing the online shopping market. Furthermore, since the creation of online shopping, the channel strategy for personal computers has given the final consumer more ways of obtaining a computer. Not only have the methods for shopping for a personal computer expanded, so has the breadth of product lines and consumer reviews. Consumers can now opt out of going to a retail outlet to shop and instead compare personal computers on the retailer and manufacturer’s websites. With the existence to the internet, computer manufacturers have tailor-made their distribution channel to offer the consumer multiple ways to purchase a personal...
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