An example is the Home and office Computer Center of NECX . Companies with direct reach of online PC buyers. Finally, retailers face competition from third parties with strong logistics capabilities, such as UPS and Federal Express , which offer to manage the components sourcing and physical distribution of products sold over the internet by other companies that maintain online storefronts. The growth of PC sales in the direct distribution channel comes mainly at the expense of the retailers. Realizing their diminishing role in the PC distribution, traditional retailers are implementing strategies that bring their offering closer to the offering of the direct PC sellers.
Retailers strive to improve the available selection in their stores.
Better selection can explain the relative success of superstores, as compared to the other types of retailers. Also in 1997, Apple reassessed its distribution channels and withdrew from the mass merchants, department stores, and consumer electronics stores, to concentrate only on distribution through superstores . This reduces the level of inventory exposure and increases flexibility to respond to market demand. Retailers are now linked to distributors with channel assembly capabilities to faster respond to customers and offer PC customization. Virtual warehousing, private configurations, and improved market responsiveness all contribute to improved margins.