Question

What is the difference between Quantative and Qualitative Forecasts at Nike? When would Nike use both methods in Operations?

Answer 1

Difference between Qalitavive and Quantitave forecaste at NIKE

Quantitative Forecaste used at Nike involves use of   mathematical models that rely on historical data , causal variable and facts to forecast demand.In Qualitative forecaste Nike is using numbers and datas which help to predict sales,future demand,maket variation and also in study of various markets where it operates.Nike uses statistical tools to come up with quatitative data.For example certain quantitative tools used are Trend Analysis Method,Regression Analysis Method, Input and Output Analysis.

Qualitative Forecaste used at Nike Involves use of factors like decision makers intuition, emotions, personal experiences, and value system.It is more of based on expert openion.For example Nike uses  AIDA sales forecaste method.AIDA means (Awareness, Interest, Desire and Action),Market Survey .

In order to survive in a market for long as in case of Nike both the methods of forecaste is being used when they study market and demand,to understand promotional technique or do they need to make any changes is also being impacted by these forecaste methods.TO understand the pattern of demand and sales and to make future endeavours Nike use both methods in Operations.

The success of any business greatly depends upon the efficient forecasting and the preparation for future circumstances.The Quantative and Qualitative Forecasts helps Nike to always remain in comptetion even when the market is evolving.