Nike Inc. has long since been a household name in the sportswear apparel industry for many years and with their success there have been some less than favorable events that can be associated with this company as well.
The first alternative that has been previously mentioned is the fact that this company had been accused of “slave labor”. Nike’s sweatshop manufacturing practices which are splattered all around the social media platforms and websites also introduce readers to many articles that give information about Nike manufacturing practices. The position that this company took with it introduced its products to the world and it seems that this companies strategic trade off caused a weakness that the company had to address but it still noted
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The company executives did outline a plan to improve conditions in addition to implementing programs that followed labor standards. To combat this negative media attention Nike has improved upon these practices in some ways as mentioned above with expansion but there is always room for improvement. Nike has the opportunity to research as many strategic models as possible to implement an action plan that can continue to improve its operations and manufacturing …show more content…
General Motors failures in the past ten years have left major cities in the United States bankrupt and deteriorating because these companies were the sole source of income that allowed these cities to thrive. In an effort to rejuvenate the economy, Nike can use all of the buildings that are standing abandoned when these companies close and revitalize these buildings as production and manufacturing plants. In applying this concept in any form or fashion Nike will be able to attack both of their weaknesses which are negative media attention and high prices. At first glance, for management, it may seem a bit elementary but in consideration of the state of our economy and the types of events that have driven people to depression and desperation, a move by a MNE such as this is not completely insane.
The next threat or weakness for this company is in the category of competition which in many years has grown for the sports apparel industry. Nike’s products are considered to be of higher price and as a result have higher quality than most of its competitors. Research suggests that the consumers do agree that Nike products appear to be of good quality but for the price they would defer to a similar product and Nike has tried to combat this issue with the introduction of apparel and not only shoes but this industry is in a shakeout stage and companies
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.
... strongly suggest that awareness of sweatshop abuses is turning consumers away from Nike.” (International Nike Mobilization - www.haleokala.com).
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
Pittman, B. (2012, September 14). Nike sweatshop history: Should action be taken?. Retrieved from https://sites.google.com/site/americanlaborcrises/labor-crises/nike-sweatshop-action
...rible situations for people who do not have the laws like U.S. workers have. Even though NIKE has implemented different methods to improve the companies’ image, there have still been many reports that show there has not been much change at all. At a net worth of 67 billion dollars and expected to grow, loyal customers is what allows this multi billion dollar company to grow in profit, the only way there will be an impact on those working in NIKE sweatshops is if today’s society takes action.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
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...
They sell numerous amount of clothes, shoes and sports equipment. The customers are happy but what about the workers? Nike workers around the world are being mistreated. In countries like China, workers are forced to work an extra hour without higher pay. They are harassed, dismissal and face poverty, according to The Guardian.
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
As soon as the word had spread out about these sweatshops and the child labor in Vietnam and other third-world countries, Nike went to Vietnam and tried to improve working conditions in the factories and tried to deny any evidence of these negative working societies. Even in some first-world countries, Nike doesn't reward long hours, as they believe that it is their duty. Nike even affects the government economics, exporting out of the US or Canada helps the government generate revenue. Because Nike is such a large and well-known company it stimulates economic growth and provides competition for other companies, which is better for the
With so many headlines coming out about inappropriate work environments and unrepresented people in the workforce, it's a good look for Nike to make this a focal point moving forward. With more people of color, women, and diverse executives, Nike could possibly see an influx of sales, athletes, and celebrities wanting to work with the
The conclusions of Youngs report are as followed. "Nike should implement the provisions of the Apparel Industry Partnership, Nike should explain and enforce their Code of Conduct, Nike should promote the development of "worker representatives, Nike should expand its dialogue with the human rights community and labor groups within the countries where they produce goods, Nike should consider "external monitoring."
In June of 1996, Life magazine published a article about Nike’s child labor that was occurring in Pakistan. The article showed a little boy who was surrounded by pieces of Nike sports gear. The articles were shoes and soccer balls. Nike then knew then that they had to make some major changes in the way they were producing their items.
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.
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.