Apple Stores Case Study

Apple stores Case Study

The Apple Store is a chain of retail stores owned and operated by Apple Inc., dealing with computers and consumer electronics. Apple retail stores were first run by the Ron Johnson, the former senior Vice President of Retail Operations. The current CEO is Angela Ahrendt. The first store opened in May 2001, and just seven months later, 27 identical stores had been opened across the US.

Back to end of 20thcentury, Apple introduced iMac, an colourful designed machine. However it’s hard to compete with other laptop competitors. In 2001, while Mac only had 5 percent worldwide market share, Dell was market leader with 14% market share, followed by players such as Compaq with 12%, Gateway with 8%, IBM with 7% and HP with 7%.

It was a “commoditized industry” which means that consumers had the same logic: many people buy their computer simply as a box, without concerning what they need it for. Because of that, the personal computer industry focused on logistics, supply chain efficiencies, business customers, and price.

However, Jobs was able to see the future trend of the digital age which makes him innovated Apple products that later be successfully accepted and loved by consumer. Jobs wanted to build an environment that can support consumer involvement. And that why Apple’s stores were born with the intention to encourage consumers explore their digital needs. That reimaged new concepts of customer service and sales associates’ job of retail store model in recent years.

Ron Johnson, Apple‘s Senior Vice-President of Retail, first came to Apple in 2000 with the mission to oversee the creation of company’s own retail stores. The first store opened in May 2001, and just seven months later, 27 identical stores had been opened across the US. In 2011, Apple owned the total of 454 stores located in 16 countries. Under the leadership of Ron, Apple Stores have been responsible for “the boring computer sales floor into a sleek playroom filled with gadgets", according to an article in the New York Times. In recent year, Apple had highest sales per square foot of any U.S retailer in 2014, with its store generated $4,798.82 in sales per square foot on annualized basis at the end of 2014. That compares to Apple’s closest rival on this front, luxury jeweller Tiffany & Co, which had sales of $3,132.20 per square foot.

What makes Apple retail stores are so successful? What i the difference of Apple stores from the others?

1. Store elements:

Like their products, each Apple Store is designed to capture the eyes of consumers and enhance Apple's reputation as the purveyor of all things cool. The most attractive things is Apple’s logo, approximately two feet high in white, at eye level. The glasses gave an inviting view of the inside of the store. There was general overhead lighting that came from inside the stores. It gave an impression of extreme brightness, perceivable even far from the outside.