3D-Magic is a new company that has developed a revolutionary 3D television. It uses a new technology that provides a much sharper and realistic 3D experience than their competitors. The company is based in the United States. The company's top management are contemplating their distribution strategy.
- Identify the key alternative distribution channels. What are the pros and cons of each one?
- Assume that you decided to use a conventional method going through major retailers such as Best Buy, Sam's Club, etc. What vertical integration method would you pursue to minimize channel conflict? Why?