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BUS-FPX3062 Study Guide - Quiz Guide: Capella University, Big 5 Sporting Goods, Zappos

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keelyodom98
15 Nov 2022
School
Capella University
Department
Finance
Course
BUS-FPX3062
Professor

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Document Summary

A big piece of nike"s direct offensive has been a shift away from wholesale and toward. The company pulled its products off amazon in 2019 and has shed 50% of its wholesale accounts over the last four years, including its relationships with dsw, zappos, dillard"s, and. Because having fewer partners has made it is easier to monitor the quality of service that the customers are experiencing. While nike does not want to get rid of wholesale distribution, they do want to get rid of retailers who do not have enough resources to differentiate nike"s brand from others. Dtc because of the numerous advantages that come with the change. Nike is able to sell directly to the customer, cutting out the extra price markups by having a third party involved. Following a dtc strategy also enables nike to communicate directly with the customer and access their target market much easier.

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Related Questions

Please be clear, concise and up to the point in your answer. Give real world examples to support your arguments.

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price. Which of the following is the BEST criticism of this argument? Explain. A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate. B) It fails to demonstrate that traditional retailing businesses are also in jeopardy. C) It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain. D) It does not specify how wholesalers can reduce costs most effectively. E) It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.

What is distribution intensity?

Assume that you are a new manufacturer of running shoes. What are your potential customer expectations? Where do your competitors do business? What sort of distribution intensity do you feel is appropriate and why?

Now assume that you are a new manufacturer of perfume. What are your potential customer expectations? Where do your competitors do business? What sort of distribution intensity do you feel is appropriate and why?

What are some advantages of intensive, exclusive, and selective distribution?

Does Nike pursue an intensive, an exclusive, or a selective distribution intensity strategy? Would you suggest any changes to this strategy?

As a manufacturer, what would be a reason for using each of the following retailers? Full line discount Specialty Category specialist Department Drug Off-price Extreme value Supermarket Supercenter Convenience store Warehouse club

Which retailer types would you choose for your new athletic shoes?

What about perfume?

4. Libby Corporation produces a wide line of calmed foods--including "Early," one of the leading brands of canned corn. The wholesale selling price for a case (48 cans) of Early corn is $9.60--which includes a 5 percent trade discount for the wholesaler. Libby also gives a 10 percent quantity discount to wholesalers who buy in carload quantities. Wholesalers normally pass the quantity discount along to their customers in the form of lower prices. The identical corn is also sold to a few large food chains for use as dealer brands. The cans are sold under different labels at $8.00 per case (minus the 10 percent quantity discount if earned). Libby allocates 3 percent of its net sales of Early corn toward national advertising. Suppose the Federal Trade Commission were to take a close look at Libby's pricing methods to see whether the manufacturer was violating federal pricing legislation. What aspects of Libby's pricing policies do you think the FTC might question based on what is presented above? Why? What laws might be involved?