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 Nikes 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 (Nikes) 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.

Submission Requirements

Your assignment should also meet the following requirements:

  • Format: Submit a professional and well-organized Word document.
  • Length: 56 double-spaced pages.
  • Font and font size: Times New Roman, 12 point.
  • APA format: Use current APA style and formatting for in-text citations and references.
  • References: 34 sources are required. As the basis for your research, you can use any of the resources noted in this course, in the Capella library, and on the Internet.

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