Nike: From Sweatshops to Leadership in Employee Practices

1553 Words4 Pages
bulb-icon

Recommended: NIKE inc and elements of organizational sustainability

Nike: From Sweatshops to Leadership in Employee Practices

A. Introduction

Nike is on of the world leaders in the footwear industry. It is doing very well in the environment and overall in the footwear industry. Nike has had some problems with its reputation due to the location of its suppliers and the linkage of Nike to sweatshops. Nike was publicly criticized for these things and it proceeded to avoid the problem and even mislead the public. Finally after having to settle on a legal case brought about by this lying Nike actually addressed the problem. Nike began taking an interest in its suppliers developing new ways of testing and screening the suppliers. The changes have lead to Nike earning many different awards or recognitions and Nike has become a leader in employee practices.

B. Situational Analysis

1. Environmental Analysis

Environmentally the US and entire world economy isn’t doing well. Every since the terrorist attacks in 2001 the US economy has been doing poorly. The housing market has crashed and oil prices have risen reaching over $100 a barrel. Both of these things have lead to higher prices on gas, groceries, and more. Consumers are afraid that their investments are going to default so they are pulling out of the stock market and losing faith; this had lead to dramatic drops in the stock market. In order to fix these problems Bush and the US government made $700 billion bailout for the US financial institutions. This helped the US regain some faith in its investments but overall has been ineffective. Outside of the US there have also been many economic problems; all markets are doing poorly.

2. Industry Analysis

Overall, the footwear industry is growing and it is doing fine in comparison to the environmental problems. The footwear industry is still seeing growth in the casual athletic footwear segment, basketball footwear segment, and running shoe segment. Growth is also expected in equipment and apparel, which is good for Nike because it has branched out to sell these things. The problem facing this industry is price deflation, which has lead to casual styles taking on more importance and a decline in the demand for premium-priced performance athletic shoes. Overall the industry is doing well as long as Nike can adapt its styles, features, and pricing to follow demand.

3. Competitor Analysis

Nike’s major competitors are New Balance, Reebok, and Adidas. Other competitors could include different brands of sports equipment and apparel.

Show More
Related

  • Commodity Chain Analysis of Nike Shoes

    1611 Words  | 4 Pages

    Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.

    Read More

  • Nike Five Forces

    1534 Words  | 4 Pages

    As Nike is an international company that has their product selling worldwide, they have countless of competitors, including many domestic local firm. However, not all of these companies have the power to compete with Nike, only a few international companies are Nike¡¦s major competitors, for instance, Adidas and Reebok.

    Read More

  • Rhetorical Analysis Of Nike

    905 Words  | 2 Pages

    Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.

    Read More

  • Nike Fixed Costs Essay

    794 Words  | 2 Pages

    Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same

    Read More

  • Nike Inc and Sweatshops

    2677 Words  | 6 Pages

    Nike’s sweatshop manufacturing practices which can be seen through media have shown people that this company goes under the good guys images, these images which are displayed in their commercials show people that their employees are treated well and their happy in their working environment.

    Read More

  • Lack of Business Ethics at NIKE

    1043 Words  | 3 Pages

    Materialistic things consume today’s society, whether it is cars, clothing, or jewelry, in a sense we rely on these objects for our happiness. Companies such as Nike, Gap, and Toms, have all had major success do to their loyal customers, who seek the name brand logo of their company. These companies have continued to grow tremendously, making billions of dollars; the companies strive to find ways to outsourcing its manufacturing, in hopes of making more and more profit. Profit is not the only thing that rises, many questions and investigations have occurred, exposing the poor ethical choices these businesses have made. Nike, one of the most well- known and profitable companies have experienced this heavy scrutiny first hand. Throughout this essay the reader will gain a better understanding of Nike’s poor ethical business decisions and what actions they took in order to repair their image.

    Read More

  • Nike Ethics

    1474 Words  | 3 Pages

    Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.

    Read More

  • Nike

    1371 Words  | 3 Pages

    Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.

    Read More

  • Nike and Its Ethical Behavior

    1821 Words  | 4 Pages

    Phil Knight started his shoe company by selling shoes from the back of his car. As he became more successful in 1972 he branded the name Nike. In the 1980’s Nike Corporation quickly grew and established itself as a world leader in manufacturing and distributing athletic footwear and sports' attire. The Nike manufacturing model has followed is to outsource its manufacturing to developing nations in the Asia Pacific, Africa, South and Latin Americas; where labor is inexpensive. It quickly became known for its iconic “swoosh” and “Just do it” advertisements and products. Its highly successful advertising campaigns and brand developed its strong market share and consumer base. But, the road has not always been easy for Nike; in the late 1990’s they went through some challenging times when their brand become synonymous with slave wages and child labor abuses. During this period, Nike learned that it paramount that the company understands its stakeholders’ opinions and ensures their values are congruent with their stakeholders. Nike learned that their stakeholders were concerned with more than buying low cost products; their customers were also concerned with ethical and fair treatment of their workers. Because Nike was unwilling to face the ethical treatment of its employees, the company lost its loyal customers and damaged its reputation. Nike has bounced back since the late 1990’s and revived its reputation by focusing on its internal shortfalls and attacking its issues head on. Nike nearly collapsed from its missteps in the late 1990’s. They have learned from their mistakes and taken steps to quickly identify ethical issues before they become a crisis through ethics audits. This paper is based on the case study of Nike: From Sweatsh...

    Read More

  • Nike Case Study

    1597 Words  | 4 Pages

    Just as it says in the text, Nike is predestined to be the front-runner in the industry. After all, the company is named after the Greek goddess of victory!

    Read More

  • Nike: The Organizational Structure Of Nike

    1033 Words  | 3 Pages

    Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.

    Read More

  • Shoe Industry

    1706 Words  | 4 Pages

    The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.

    Read More

  • Nike strategy

    603 Words  | 2 Pages

    For those marketing efforts, Nike does successful to promote itself with its not-quite-nice images and also generate some criticism that I think they are irresponsible as we can see from their ad that they does not create any positive effects to the society. For its use of overseas factories, it is great opportunity to expand the production base to the lower cost of labor, but it is totally irresponsible and unethical when labor practice does not meet the standard.

    Read More

  • Case Study Of Nike Sports Shoes

    1059 Words  | 3 Pages

    Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).

    Read More

  • The Shoe Industry

    876 Words  | 2 Pages

    is Nike inc.. Then going down the line is Reebok, Fila, and Adidas. Nike being

    Read More

More about Nike: From Sweatshops to Leadership in Employee Practices

Open Document