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Analysis Of Nikes Dtc Distribution Strategy.edited

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Amridge University
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NIKE’S DTC DISTRIBUTION STRATEGY REPORT 1
Nike’s DTC Distribution Strategy Report
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NIKE’S DTC DISTRIBUTION STRATEGY REPORT 2
Nike’s DTC Distribution Strategy Report
The last few decades have seen a dramatic prevalence in the number of direct-to-consumer
marketing business models integrated into the overall marketing strategy to enhance operations
and competitive advantage. In particular, the disruption has transformed the brand-consumer
relationship. Most traditional and upcoming organizations are no longer depending on
intermediaries and physical stores to showcase their products and services to the customers.
Customers can now purchase products and obtain services directly from the brands or companies
themselves, effectively eliminating complex distribution networks of retailers. The majority of the
current DTC brands have been primarily made possible by the internet, with firms targeting
younger generations. Nike is one of the firms that recognized the potential benefits of using the
DTC distribution strategy. The sportswear giant has grown direct-to-consumer sales significantly
through its use, thereby enhancing competitive advantage and improving sustainability. This paper
explores the integration of the DTC strategy by Nike to ascertain its benefits and provides
recommendations of the business model to its competitor Adidas.
Analysis of why Nike has Adopted DTC Supply Chain Strategy
Research reveals that Nike has improved its direct-to-consumer sales from 16% of its
revenues to 35%, thereby improving its market share in the industry (Salpini, 2021). According to
studies, about 80% of consumers plan to buy products and services from D2C brands by 2023
(Salpini, 2021). This is in line with many organizations, including Nike, where it no longer
provides customer experience physical but focuses on 100% digital transition, thereby offering a
more customer-centered design, quality, and service. Nike has leveraged the advantages of a
direct-to-consumer distribution strategy to enhance its competitiveness. In particular, some of its
benefits comprise increased digital platforms to reach clients directly, advocate for their target

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NIKE’S DTC DISTRIBUTION STRATEGY REPORT Nike’s DTC Distribution Strategy Report Student Professor Course Date 1 NIKE’S DTC DISTRIBUTION STRATEGY REPORT 2 Nike’s DTC Distribution Strategy Report The last few decades have seen a dramatic prevalence in the number of direct-to-consumer marketing business models integrated into the overall marketing strategy to enhance operations and competitive advantage. In particular, the disruption has transformed the brand-consumer relationship. Most traditional and upcoming organizations are no longer depending on intermediaries and physical stores to showcase their products and services to the customers. Customers can now purchase products and obtain services directly from the brands or companies themselves, effectively eliminating complex distribution networks of retailers. The majority of the current DTC brands have been primarily made possible by the internet, with firms targeting younger generations. Nike is one of the firms that recognized the potential benefits of using the DTC distribution strategy. The sportswear giant has grown direct-to-consumer sales significantly through its use, thereby enhancing competitive advantage and improving sustainability. This paper explores the integration of the DTC strategy by Nike to ascertain its benefits and provides recommendations of the business model to its competitor Adidas. Analysis of why Nike has Adopted DTC Supply Chain Strategy Research reveals that Nike has improved its d ...
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