![\"\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Nike-300x132.jpg\")
In response to medium-term strategic challenges, Nike is also pursuing new channels for distribution, including a pilot program it began earlier this year to sell lower-end items through Amazon. Additionally, Nike also alluded to discontinuing some of its distributor channels, only focusing on those that are \u201cdifferentiated retailers\u201d that present Nike\u2019s products in a heightened, curated way [7].<\/p>\n
Although it is reassuring to see Nike\u2019s shift in focus towards the direct-to-consumer space, if the company truly wants to have a \u201cConsumer Direct Offense\u201d and transform its supply chain to keep up with today\u2019s digitalization, it needs to \u201cJust Do It\u201d. First, Nike needs to invest in more initiatives that drive e-commerce purchases. An increase in social and other digital ad-spend could drive increased traffic to NIKE.com and allow the company to double down on its direct-to-consumer strategy. Second, Nike needs to figure out Amazon\u2019s long-term role in the company\u2019s strategy. Recognizing that the internet giant has a role to play if Nike truly wants to go all-in on direct-to-consumer is an important step, but a pilot program for only lower-end items isn\u2019t enough. Despite concerns about loss of pricing power and brand control, Nike needs to make its relationship with Amazon more permanent and all-encompassing across product lines. Leveraging Amazon\u2019s expansive supply chain would be the quickest and easiest way for Nike to digitalize its own.<\/p>\n Digitalization may be the cause of the retail industry\u2019s woes, but it can also be its savior. The digitization of the supply chain enables companies to address the new requirements of customers, the challenges on the supply side, and the remaining expectations in efficiency improvement [8]. With increasing pressure to transform its supply chain to be faster, more flexible, granular, accurate, and efficient, what role do traditional partnerships play in Nike\u2019s \u201cConsumer Direct Offense\u201d? Is there any value in investing in \u201cdifferentiated retailers\u201d such as Nike\u2019s relationship with Nordstrom Inc.? What about more traditional wholesale partners such as the independent running and sporting goods stores? In overlooking these intermediary retailers, is Nike missing a big opportunity to influence athletes that are true champions of the brand? Or do these retailers only pose an additional cog in the outdated supply chain wheel?<\/p>\n <\/p>\n (731 words)<\/p>\n <\/p>\n References:<\/p>\n [1] \u201cNike, Inc. Reports Fiscal 2018 First Quarter Results,\u201d press release, September 26, 2017, on Nike, Inc. website, [https:\/\/news.nike.com\/news\/nike-inc-reports-fiscal-2018-first-quarter-results], accessed November 2017.<\/p>\n [2] Pamela N. Danziger, \u201cNike’s Challenges In The U.S. Market,\u201d Forbes, October 27, 2017, [https:\/\/www.forbes.com\/sites\/pamdanziger\/2017\/10\/27\/nikes-challenges-in-the-u-s-market\/#64d4cb9427df], accessed November 2017.<\/p>\n [3] Matthew Townsend, \u201cNike Declines After Athletic Giant Gives Bleak U.S. Outlook,\u201d Bloomberg, September 26, 2017, [https:\/\/www.bloomberg.com\/news\/articles\/2017-09-26\/nike-s-anemic-u-s-growth-forces-company-to-rely-more-on-asia], accessed November 2017.<\/p>\n [4] Alicke, K., D. Rexhausen, and A. Seyfert, \u201cSupply Chain 4.0 in consumer goods,\u201d McKinsey & Company.<\/p>\n [5] Porter, M. and J. Heppelmann, \u201cHow smart, connected products are transforming competition,\u201d Harvard Business Review (Nov. 2014).<\/p>\n [6] \u201cNike, Inc. is Accelerating a Consumer-led Transformation to Ignite its Next Phase of Long-Term Growth,\u201d press release, October 25, 2017, on Nike, Inc. website, [https:\/\/news.nike.com\/news\/nike-inc-is-accelerating-a-consumer-led-transformation-to-ignite-its-next-phase-of-long-term-growth], accessed November 2017.<\/p>\n [7] Sarah Halzack, \u201cNike’s Solid Game Plan Has an Amazon-Shaped Hole,\u201d Bloomberg, October 26, 2017, [https:\/\/www.bloomberg.com\/gadfly\/articles\/2017-10-26\/nike-investor-day-solid-game-plan-amazon-shaped-hole], accessed November 2017.<\/p>\n [8] Rexhausen and Seyfert, \u201cSupply Chain 4.0 in consumer goods,\u201d McKinsey & Company.<\/p>\n","protected":false},"excerpt":{"rendered":" Nike has made recent efforts on direct-to-consumer and supply chain transformation, but is still experiencing stalling sales. Are the recent initiatives enough?<\/p>\n","protected":false},"author":9853,"featured_media":21420,"comment_status":"open","ping_status":"closed","template":"","categories":[52,2123,277,158,16],"class_list":["post-21383","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-amazon","category-digitalization","category-direct-to-consumer","category-nike","category-retail","hck-taxonomy-organization-nike","hck-taxonomy-industry-retail","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\n![\"\"](\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2017\/11\/Amazon-1-300x138.jpg\")