- NIKE’S DTC DISTRIBUTION STRATEGY
Overview
In this assignment, you will write a report with your analysis of a DTC distribution strategy for an executive-level management team.Instructions
Respond to the following scenario as you complete your report:You have been hired as a consultant by Adidas to analyze Nike’s direct-to-consumer (DTC) distribution strategy to determine if Adidas should develop a similar competitive strategy.Nike, the U.S. sportswear giant, has been working to bring its manufacturing process closer to the point-of-sale, and concurrently adopting a direct-to-consumer strategy with a focus on owning the experience. Selling direct-to-consumer, commonly referred to as DTC or D2C, means you are selling your products directly to your end customers.Write a management report analyzing Nike’s supply chain strategy for Adidas’ executives. Include the following:- Explain why the company (Nike) has adopted a DTC supply chain strategy.
- What are the advantages or disadvantages of a DTC supply chain strategy to Nike?
- Why does a DTC strategy boost profitability?
- Analyze the importance of the Internet and social media as related to the company’s (Nike’s) supply chain strategy.
- In your analysis, consider not only today’s marketplace but also look ahead 10 years into the future. For example, what advantage does Nike gain against its competition by having a DTC supply chain strategy?
- Analyze how the company’s (Nike’s) DTC strategy satisfies customers.
- For example, what advantage does the company gain from connecting directly with its customers?
- Recommend steps for the company (Nike) to continue to grow its DTC strategy.
- Consider providing recommendations in the areas of organizational structure, technological investments, digital strategy, and customer relationship management.
- Recommend steps for the company (Adidas) to effectively grow its DTC strategy.
- Consider providing recommendations in the areas of organizational structure, technological investments, digital strategy, and customer relationship management.
- Explain why the company (Nike) has adopted a DTC supply chain strategy.
