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.

1.Identify the key alternative distribution channels. What are the pros and cons of each one?

2.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?