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Building The Apple Store

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Darcy McClintock

on 2 March 2015

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Transcript of Building The Apple Store

The History of Apple
Founded on April 1, 1976 by Steve Jobs and Steve Wozniak in Cupertino, California
◾New CEO as of 2014 is Tim Cook
Originally started as a manufacturer of personal computers
◾Apple II, Macintosh, and Power Mac
As of 2012, Apple is the largest publicly traded corporation in the world by market capitalization with an estimated value of $626 billion US dollar
Products- macs, OS X, ipads, iphones, ipods, apple TV, apple accessories
Opened its first apple retail store in May 2001◦
needed to increase share in market (Best But/Circuit City not suitable retailers
Apple now has 451 stores worldwide in 16 different countries
Overview
Building the Apple Store

Evaluation of "Byte"
Ease some of the inconsistent customer service complaints
Prevent customers having to travel to larger cities to have the Apple store experience

Evaluation of Creating More Stores
Stores are currently very limited
Not in every US state
Missouri has 3 stores (2 - St. Louis & 1 - Kansas City)
Launching more stores across the nation would help lessen traffic in current stores.
Customers would be happy with more access to Apple Geniuses across the nation.
Alternative Course #1
Key Issues
Where to sell apple products
Apple did not have good market share in comparison to companies like dell
Apple products being sold at BestBuy and Circuit City were being picked over by cheaper electronics
Inadequate customer service for apple products in BestBuy and Circuit City stores
Apple stores layout
Stores are less accessible
Over-crowding in stores
Alternative Courses of Action
1. Apple introduces “Byte” store format

2. Creating more full-sized stores

3. Increase customer service


Darcy McClintock, McGuire McManus, Savannah Miller & Blake Philips

Alternative Course # 3
Improve customer service
Impose a 30-minute limit on usage of the demo machines.
Add register areas
More staff in the huge stores
Moving higher end devices to be closer to the back of the store where direct employee supervision and customer service is easier than in traditional mall based stores.

Alternative Course #2
Create more full sized stores
Customers have limited access to Apple retail stores
Apple planned to close 20 locations because those store were not big enough.
They planned on reopening in cities with room to grow the stores and that were close to where they shut down the previous locations.


Evaluation of Improving Customer Service
Our Recommendation

Questions?

Apple's Retail Stores Layout

"Byte"
mall kiosks staffed by one or two Apple employees
mini genius bar
limited inventory
located in malls

Apple's History
Key Issues
Alternative courses of action
Evaluation of alternative courses
Our recommendation
Questions?
Unique store qualities
bright lighting
stores interior made only of glass, stainless steel, and wood.
Free-form layout
allows customers to browse
Right side - iphone and ipods
Left side - high end desktop and laptop computers
Back of store - 'the studio'
2-3 island tables, childrens play area
Back wall - genius bar
30 minute demo time will increase customer satisfaction
Adding registers gives customers an obvious place for people to pay for purchases.
This would be in addition to having every floor staff person available to check people out (and letting people check themselves out for certain items).
Byte
More efficient than opening new full-sized stores
Apple would have more of a presence/broader distribution of stores
convenience for customers
The new format would maximize space efficiency and save money for Apple, while expanding its current market.
It would not change the exclusivity or prestige associated with Apple’s brand, as customers from smaller cities would still have to travel to larger cities to get the full Apple store experience.
We would recommend testing this format in select mid-sized cities in each region of the U.S. (South, West Coast, East Coast, Midwest) before launching it on a global scale.
Full transcript