Distribution and Global Marketing for Nike

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Distribution and Global Marketing Analysis for Nike Inc. In looking at Nike Inc.’s athletic shoe supply chain, the company utilizes a multi-level channel strategy to move products from manufacturing to the consumer. Starting with customer needs and wants, Nike Inc. looks to social media platforms to connect with consumers to target what improvements and/or new products the company can implement when it comes to athletic shoes. Nike Inc. then initiates the product development phase and comes up with a new athletic shoe design to match the feedback that was received from consumers. From there the company utilizes two different intermediaries, suppliers to produce the raw material needed to build the shoes, and manufacturers to build and assemble the final product. Once designed, Nike Inc. then works on marketing the product to target audiences in different segments and this process is done by the company in house. Lastly, the company then utilizes facilitators to distribute the final product to retailers for the product to be sold directly to consumers (See figure 1.1). Figure 1.1 (Crain & Abram 2008). This multi-level approach doesn’t allow Nike Inc. to have total control over the product once it gets involved with the participating intermediaries, however because of the way Nike Inc. strategically insourced the work such as product development, marketing and branding, the company is able to have a majority of the control of the aspects that affect consumers’ decision to purchase. This method works well for Nike Inc. because they are able outsource production functions such as manufacturing to outside intermediaries that have lower operating costs then what Nike Inc. itself could manufacture the product at, therefor there is a cost saving for the company. Also, this set-up creates a value network for Nike Inc. Where the supply chain is derived from

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