Question

The ability for nike to manufacture its own shoes and then build stores for distribution is an example of

Answer 1

Answer: The ability for Nike to manufacture its own shoes and then build stores for distribution is an example of  FORWARD INTEGRATION.

Explanation: Forward integration is a business strategy that involves a vertical integration where the business model is prepared in order to control the distribution of the products manufacture. The company manufactures its own products and makes stores for its own control over supply of company's products. It leads to downgrade of the supply chain, as they are the own distributors.

In the case of NIke, it manufactures its own products and has also build stores for its distribution of the manufactured products.

Answer 2

A business makes and sells its own products they earn a lot of money as they eliminate all of the middlemen in the process.

This helps them to ensure quality at a better price.

They can have better margins of profit.

This is the reason why a lot of business houses are encouraging self production and self sales.