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).
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
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
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
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.
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.
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...
With the increasing awareness and publicity of poor working conditions in subcontracted factories in East Asia, Nike has stimulated an uprising of activist and watchdog groups working toward seeing these conditions changed. With Nike in the negative spotlight, various organizations have revolved around generating a negative outlook on Nike’s practices of social irresponsibility. Certain campaigns such as the “National Days of Consciousness” and “International Day of Protest” were organized to educate people on the deplorable working conditions in Nike’s Asian manufacturing plants, and were designed to get more people involved in global employment issues.
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.
In my point of view, the most unethical Nike’s decision is not to take the responsibility to ensure at least minimum and humane standards that it should offer to its work force. For example, in Vietnam, Nike paid its workers less than the cost of three meals of rice and vegetables and tofu. It treated workers no better than in sweatshops with only two drinks of water and one bathroom break in an eight hour shift. Also Nike let its contractors in developing countries to use child labor under sub-standard conditions. On the other hand, the least unethical Nike’s decision is to have a TV commercial featured a Manchester United player explaining how spitting at a fan and insulting a coach won him a Nike contract.
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.
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
Representation matters in all facets of life whether it be in regards to youth seeking mentorship, in the realm of entertainment, or in the workplace. A diverse group of people is more likely to come together and curate a useful product for all of society to be able to use and feel embraced. Unfortunately, as Nike's stock has taken a dive in recent history and the resignation of Nike President, Trevor Edwards, due to inappropriate workplace behavior involving harassment and lewd acts, Nike is looking for ways to save face and revamp their brand in the midst of this current turbulent period. Let it be known, Nike was birthed not too long ago in 1971 and has skyrocketed to prominence with the release of elite performance sneakers and the calculated