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Monday, October 25, 2010

Apple’s Channel Sales Strategy

Arrogance in channel partner relationship is rare but is not unheard of. Companies like Apple for example has the “cajones” (let me borrow from Mrs. Sara Palin’s colorful vocab) to be arrogant and shall we say, less than accommodating to some of their resellers because Apple knows their products are highly coveted and in some cases, revered.

In most cases, channel sales strategy includes pleasing the channel partners as much as the client because vendors know that majority of their sales come from their network of channel partners. Vendors, especially the lesser known ones, have to build their brand in order to be successful and in order to build a reputation for quality, they need their channel partner’s cooperation.

http://dziklaptops.files.wordpress.com/2009/12/apple-macbook-air-gearpatrol-montage-xl.jpg
partner profiling

I wonder how Apple’s channel sales strategy differs from the regular hardware and software manufacturer. How are the partners compensated and motivated? How much incentives are given? Do they have access to a partner portal to make their jobs easier? How is conflict averted in their network?

With Steve Jobs visionary and detail-minded approach to business and technology, I’m sure that majority of channel partners are satisfied with the vendor’s partner program. Although the company was criticized for lack of commitment to resellers, and lack of communication, the company is still trying to enhance their channel distribution.

In one unique aspect, Apple has gotten away with much conflict even though they are selling their products directly through their websites and stores. But even the great company is aware of their limitations. They could not for example, build stores and reach millions of customers all around the world. The company realizes the importance of channel partners in bringing their products to the greatest number of people.

Is it right to be arrogant knowing that millions of people consider your products iconic and thousands line up to buy your latest gadgets? I think Apple should check their egos out the door. The company is not perfect and has had their fair share of flops in the past. Treating channel partner fairly can only lead to better sales performance and the company should acknowledge their contributions to the success of the company.