Posts in Marketing
Nike Commodity Chain Analysis

Nike’s brand focus has always been social; developing ‘campuses’, clubs and sponsorships as much as product design. This means that internalisation and manufacturing skill were not an advantage Nike possessed; especially given much of the manual labour is unskilled and accessible internationally. With nothing constraining them to traditional manufacturing in America and Europe, the lower wages, supply costs and reduced oversight available in Asia were very appealing. While largely welcomed by the budding economies Nike settled in, this enormous shift did leave employment holes in the manufacturing regions Nike abandoned (Mokhiber, 1994). Nike was now able to produce their shoes cheaper than before, with greater flexibility to shifting consumer demands and preferences and place greater focus on their internal specialities and efficiencies.

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David Jones marketing channel recommendations

“Omni-channel” was used to refer to the utilisation of one core infrastructure to deliver a consistent experience across devices, consumers and channels to the customer. The “click and collect” initiative is highly evocative of this as it used existing brick-and-mortar infrastructure to provide a faster product to online shoppers via in-store pickups. As the products were already stocked in stores, it was simply a matter of establishing the infrastructure to process orders, but the pay-out for some consumers was huge.

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