Case Scenario:
When Apple stores were launch in 2001, many questioned their prospects and Business Week published an article titled, 'Sorry steve, Here's Why Apple Stores Won't Work. Fast forward five years, and Apple was celebrating the launch of its spectacular new manhattan show case store. With almost 275 locations by the ends of 2009, net revenue from stores totaled $6.6 billion and represented roughly 20 percent of total corporate revenue. Annual sales per square foot of an Apple store have been estimated at $4,700 the fifth Avenue location is reported to do a staggering $35,000 of business per square foot compared to Tiffany's $2,666, Best Buy $930, and Saks $362. Any look at it, Apple stores have been an unqualified success. Designed to fuel excitement for the brand, they let people see and touch Apple products and experience what Apple can do for them making it more likely become Apple customers. They Target tech savvy customers with in store product presentations and workshops a full line of Apple products, software and accessories and a Genius Bar staff by Apple specialist who provide technical support often free of change. Although the stores upset existing retailers, Apple has worked hard to smooth relationship, in part justifying the decision as a natural evolution of its existing online sales channel.
The "Apple Stores" insert discusses the success of the Apple Store and the growth in Apple product end-users. In 2001, BusinessWeek wrote a piece on why the Apple store concept would not work. Discuss a product or service that you or a family member thought a dud but was successful. Why did you think it not a viable product, what features made it successful, and do you now see previously unrecognized value?