In terms of location and distribution of your products or services, do you think that your organization is strategically located? What would you recommend management do if any, in terms of their location and distribution? DISTRIBUTION
Yes, I think that Nike Inc. Is strategically located.
I would recommend Nike Inc. to use intensive distribution i.e. Nike inc. would sell to Wholesaler; who then sell to retailer in bulks, and the retailers would sell to consumers e.g. Nike Inc. would sell to Nike Factory (Wholesaler) -> Edgars/ Sports Scene (retailers) -> Consumers.
There are various intermediaries that Nike Inc. uses but I think ‘Franchising’ is one of the best intermediaries they should concentrate on; in order to expand the brand. Nike Inc. should open a few more franchise retail outlets.
Physical Distribution (logistics)
Nike Inc. should be very careful in choosing their method of transportation like a Ship for instance; which will take a very long time to reach its buyer/destination. I would recommend Nike Inc. to use Air transportation since their products are light in weight and it will be quicker to reach consumers.
I think direct marketing is the way to go either by mail order or television (adverts). Nike Inc. could use Newspaper Company like Junk Mail, Sunday Times or even use catalogues whereby consumers can send money and Nike Inc. sends them the ordered product.
Since most of the people spend most of their time browsing the internet; it would be wise for Nike Inc. to use electronic catalogues on the internet/website for consumers to have access on their products. It will be more efficient and easy for consumers to buy Nike products on the internet.
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