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To what extent can Apple expand its distribution networks to increase market share and competitive advantage?

This research proposal investigates how Apple could increase its market share and competitive advantage by expanding its distribution networks. The study proposes to examine the relationship between wider distribution coverage and enhanced business performance, with a particular focus on customer access and satisfaction. By analyzing various factors that influence distribution strategies, the research aims to provide insights into effective expansion methods that could benefit Apple.

September 18, 2024

* The sample essays are for browsing purposes only and are not to be submitted as original work to avoid issues with plagiarism.

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Student’s Name

Professor’s Name

Course

Date

To what extent can Apple expand its distribution networks to increase market share and

competitive advantage?

Rationale

The extent of distribution networks used by a business is one of the determinants of the levels of

business success. The longer and the more extensive the distribution network used by a business,

the higher the ability to reach a larger number of customers and sell an increased number of units

of products. Further, an extensive distribution network enables a business to increase the levels

of consumer convenience and the consequent levels of consumer satisfaction from the sale of

products and services (De Clippel Geoffroy and Kareen 1). In contrast, a business with no

extensive distribution network forces its customers to incur significant expenses in buying the

product or service. For instance, if a business does not have a store in a given country, customers

in that country have to import the product from other countries, usually leading to high costs and

low levels of customer satisfaction. Extensive distribution networks also increase the ability of a

business to offer logistic support to customers for higher levels of effectiveness. Considering this

logistic support, consumers of various electronic products can access spare parts and repair

services within their areas or countries of residence. The research to be conducted using this

research proposal will evaluate the extent to which Apple can increase its distribution networks

for higher levels of market share and competitive advantage.

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Theoretical Framework

Consumer theory states that consumers spend money buying various products depending on their

preferences and budget limits (De Clippel Geoffroy and Kareen 1). Therefore, a consumer buys a

product that he or she is able to buy within the budget limits, and when the product exceeds the

budget, the purchase is not done. Therefore, in consideration of the distribution channels used by

a business, the shorter the distribution channels, the lower the ability of consumers with budget

constraints to buy the products. For instance, when Apple does not open a store in a given

country, customers in that country who cannot import a phone made by the company are forced

to buy from competing businesses.

Apple is a multinational corporation that deals with making and selling various electronic

products, including phones, watches, tablets, and computers. Apple is, headquartered in the

United States, buses high levels of product differentiation to target a wide range of consumers

and ensure that a large variety of products are bought for high revenues and profits. However, the

distribution network used by Apple only covers 25 countries and 518 stores across these

countries, including the United States. In a demonstration of the high revenue-generating abilities

by Apple, the company made a revenue of $ 365817 million in 2021. This revenue increased

from the one made by the company in 2020 (Apple Annual Report 2021 33). Therefore, the

expansion of distribution networks is a mechanism that can lead to an increase in the levels of

market share and competitive advantage Apple.

Research Question: To what extent can Apple expand its distribution networks to increase

market share and competitive advantage?

Literature Review

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A vast amount of literature exists on the topic of distribution networks and business success. The

existing literature defines mechanisms through which effective distribution networks increase the

levels of business success. Additionally, the existing literature cites the role of incorporating

various forms of technology in distribution to ensure that the maximum business benefits are

obtained. This section evaluates the existing literature relating to distribution channels and the

relationship between market share and competitive advantage.

Bui and Dat (2021) highlighted that wide distribution networks are associated with

improved firm performance. In the research conducted to evaluate distribution networks,

business strategy, and performance, the researchers found that the higher the effectiveness of

distribution channels, the higher the ability of a business to generate high revenues and profits.

Additionally, the distribution channels show that a business has an increased ability to sell more

units of products and offer services to more customers (BUI and Dat 35). The higher the number

of customers served and the higher the number of units sold, the higher the levels of business

performance in terms of revenues and profits. Further, selling more units of products to a higher

number of customers increases the levels of market share controlled by a business. Therefore, in

relation to the research question under consideration, this source will help evaluate the extent to

which expanding the distribution networks by Apple can increase market share and competitive

advantage.

Research shows that expanding the distribution networks by a business while considering

the specific customers’ location is one of the mechanisms of increasing the levels of business

success in terms of market share and competitive advantage. Research by CFI Team (2022) cited

that targeting specific customers’ locations helps to increase the levels of consumer satisfaction

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since the consumers are able to buy the required products from the specific locations where they

live. In the research, the higher the effectiveness of a business in targeting the specific locations

where customers live, the higher the business’s ability to increase consumer convenience and

facilitate higher market share and competitive advantage. Therefore, in relation to the research

question under consideration, the research to be conducted using this proposal will focus on how

Apple can target locations such as countries with low product uptake. The effectiveness of this

targeting will then be assessed in terms of its ability to increase the levels of market share and

competitive advantage by the business.

Research shows that the existence of extensive distribution networks used by a business

helps to lower the costs of buying the products by the consumers and leads to an increase in the

levels of market share by the business. Hennart cited in research that firms grow into

multinationals by expanding their distribution networks and reducing the costs at which

consumers buy the products they sell. In this regard, the higher the levels of the extensiveness of

distribution networks, the higher the ability of customers to buy the products at low costs

compared to the high costs of importation when the distribution networks do not reach a given

country. For instance, if a given country does not have an Apple store, customers wishing to buy

iPhones from the specific country may have to import at relatively higher costs. Therefore,

customers’ ability to buy Apple products at local stores ensures that more customers can afford

the products, leading to higher levels of market share and increased levels of competitive

advantage by businesses. Therefore, the benefits of expanding distribution networks of Apple

will be evaluated in the research to be conducted using this research proposal.

Methodology

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The research to be conducted using this proposal will incorporate both primary and secondary

data. The combination of primary and secondary data will be done to ensure that the highest

volumes of data that can be used to answer the research question is obtained and accurate

answers to the research question are obtained. Additionally, the use of both primary and

secondary data ensures that there is no bias in the answers to the research question and that the

findings are highly reliable.

Primary Data

Primary data will be obtained from interviewing the marketing manager at Apple and the

operations manager. The interview with the marketing manager will determine the extent of

Apple’s distribution networks and the possibility of expanding these networks to cover more

areas for higher levels of business success. In this regard, the evaluation of the distribution

networks used by Apple will be done in consideration of the number of countries where Apple

operates and the possibility of increasing its coverage to a higher number of countries. Further,

the interview with the marketing manager will determine whether Apple has enough resources to

expand its distribution networks further. Considering these resources, the major focus will be

financial and human resources. The marketing manager will also evaluate the effectiveness of

expanding the distribution networks in terms of increasing the levels of market share controlled

by Apple and the levels of competitive advantage.

The interview with the operations manager will be used to evaluate the ability of the

company to expand its distribution networks without negatively affecting the levels of business

performance or the quality of products and services. The operations manager will explain

whether the company has the ability to focus on the increase in the distribution networks and

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continue with high levels of consumer satisfaction through the making and selling of high-

quality electronic products.

Secondary data

Secondary data to be used in the research will be obtained from a review of financial statements

by the company and an evaluation of peer-reviewed articles on the topic. In consideration of the

annual report, the consideration will be the revenues generated by Apple in the recent financial

years. In the report, the changes in business assets and liabilities will also be evaluated to

determine how the company has performed in recent years in consideration of assets and

liabilities. The changes in business revenue and business assets and liabilities would be used to

project the benefits that could accrue to Apple if the company were to expand its distribution

networks to more countries. Peer-reviewed journal articles will evaluate the relationship between

distribution networks, market share, and competitive advantage.

Analysis

The quantitative data analysis of the obtained data will be done using charts and graphs to

determine the changes in Apple’s financial performance in recent years and how expanding

distribution networks may impact these changes. Qualitative data will be analyzed using the

suitability of the obtained data in answering the research question. The analysis of qualitative and

quantitative data will inform the conclusion and the answer to the research question regarding the

effectiveness of distribution networks in increasing market share and competitive advantage.

Conclusion

The existence of extensive distribution networks in Apple will lead to an increase in the levels of

market share and the levels of competitive advantage controlled by the business. Extensive

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distribution networks enable a business to increase customer satisfaction, reduce the costs of

buying products and services, and increase market share.

Anticipated Difficulties

There are a number of anticipated difficulties and possible solutions to the difficulties, as

summarized in the table below,

Ethical Considerations

A number of ethical considerations will be made in the research process. These considerations

will define the nature of data collection and analysis to eliminate bias in the findings. One of

these considerations is that no underage children will be used in data collection. Further, the

obtained data will not be manipulated to fit a certain trend or a pre-determined hypothesis.

Further, utmost privacy will be considered for the data that will be collected about the company

during the data collection process (Arifin 30). Under this privacy, all information that is not

supposed to be disclosed will not be disclosed without express authorization from the company

Anticipated Difficulties

Solutions

Relatively high costs of collecting primary

data.

Financial resources will be put aside to

enhance the smooth flow of the data collection

process.

Challenges in writing down the answers

during the interview

A recorder will be used to ensure that all

information is captured.

Challenges in scheduling the interviews with

the managers.

Appointments will be sought prior to the

interviews to facilitate easier primary data

collection.

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officials at Apple. Participation in the research process will be voluntary, and the results will be

communicated to all the participants.

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Works Cited

Apple Annual Report 2021. https://s2.q4cdn.com/470004039/files/doc_financials/2021/q4/_10-

K-2021-(As-Filed).pdf

Arifin, Siti Roshaidai Mohd. “Ethical considerations in qualitative study.” International Journal

of Care Scholars 1.2 (2018): 30-33.

BUI, Lan Thi Hoang, and Dat Ngoc NGUYEN. “The distribution channel, strategic factor and

firm performance: Evidence from FDI enterprises.” Journal of Distribution Science 19.10

(2021): 35-41.

CFI Team. “Distribution Networks”. (2021). https://corporatefinanceinstitute.com/resources/

knowledge/other/distribution-network/

De Clippel, Geoffroy, and Kareen Rozen. “Consumer theory with misperceived tastes.” Available

at SSRN 3223654 (2018).

Hennart, Jean-Francois. “Springing from where? How emerging market firms become

multinational enterprises.” International Journal of Emerging Markets 13.3 (2018):

568-585.

September 18, 2024

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Academic level:

Ph.D.

Type of paper:

Research proposal

Discipline:

Business and management

Citation:

MLA

Pages:

7 (1925 words)