DTC competitive strategy to Nike’s.
Write a 5-6 page report for an executive-level management team about whether Adidas should develop a similar DTC competitive strategy to Nike’s.
Introduction
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. A report is to be presented to the executive management team of Adidas with your analysis.
Overview
In this assessment, 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’re selling your products directly to your end customers.
Write a management report analyzing Nike’s supply chain strategy for Adidas’ executives. Include the following:
Analyze why the company (Nike) has adopted a DTC supply chain strategy by explaining the advantages and disadvantages and the impact of this strategy on its profitability.
Analyze the importance of the Internet and social media (to Nike) and compare today’s marketplace to a future marketplace advantage.
Analyze how the company’s (Nike’s) DTC strategy satisfies customers and discuss the advantages of this type of competitive distribution strategy.
Sample Solution
DTC competitive strategy to Nike`s
The last few decades have seen a dramatic prevalence in the number of direct-to-consumer (DTC) marketing business model integrated into the overall marketing strategy to enhance operations and competitive advantage. In particular, the disruption has transformed the brand-consumer relationship. Nike is one of the firms that recognized the potential benefits of using the DTC distribution strategy. Its DTC model that began about a decade ago has been accelerated and positively affected by the pandemic. Profit margins are higher for Nike with this model, and it also gives Nike greater control of its brand reputation. Monitoring the external environment, including customer preferences, technological advances, and the actions of competitors, is a key part of creating operations strategy to stay viable in the long run and craft plans that will help a business avoid entropy.
