Nike Case Analysis

NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf

Nike was growing rapidly. Consumers enjoyed the quality of the shoes so much that the company decided to branch off and design sporting goods that would also be produced using oversea manufacturers. There are many positive and negative aspects to their

Over the years, Nike shoes have been globalized and to a lot of people they have became a “necessity”. Sales have skyrocketed 16% more than years prior. The demand of these shoes have been strong in the United States with the help of these professional athletes. Nike has created a global production that has benefited their consumers and themselves. Their margins have grown a significant 1.4 percentage point to 45.9 percent as of 2015.

The company Nike operates in over 50 different companies. This makes them a very large global company. Nike makes all kinds of products including gym shoes, clothing and apparel, equipment and accessories. “In 2004, Nike products were manufactured by more than 800 suppliers, employing over 600,000 workers in 51 countries” (Locke, Kochan, Romis & Qin, 2007, p. 6). Nike came under fire because of their workers that work outside the United States. In other countries, labor laws are unlike those within the United States. Large corporations often exploit the fact that they can pay laborers significantly less outside of the United States. Companies may also provide less than favorable working conditions to its labor force outside of the United States.

This situation analysis focuses on Nike. A company founded in 1964 which has become one of most recognizable and most popular brands in the entire world.

     History: NIKE, Inc. is engaged in the design, development and worldwide                 marketing of footwear, apparel, equipment and accessory products. The                 Company sells its products to retail accounts and through a mix of            independent distributors, licensees and subsidiaries in over 120 countries            around the

Nike is a multinational corporation that is based in America. The company has offices in forty five countries around the world and continues to grow. The success of the organization has caused a lot of problems for the countries that host Nike. Nike has been accused of engaging in child labor, not paying the employees proper wages for their work, and forcing employees

The clothing and shoe giant Nike has managed to turn its image around. Nike Has not fully achirvrd its goal in bringing factories into line,but there's no denying that the company executed one of the greatest image was being wuestion in regards to unethical desicions of using swaet_shops.In 1996 that would change thayt,by Nike estbalishing a department tasked with improving the lives off factory workers.the,in 1997 more allegations emereged and college students around the nUnited states began protesting the company.In 1998 Nike faces weak demand and nrelenting criticism.it has lay of workers,and begins to realizes it needs to change.the real shift would begin in1999 when Nike begun to create the Fair labor asscoation.also in 2005Nike publishes

Continuing throughout most of the nineties, Nike remained in the news for numerous human right issues at many of their subcontractor factories, although they had initiated a code of conduct, hired an outside activist to scrutinize labor systems outside of the United States. Not until 1998,

Nike Incorporated is sold in more than 40 foreign countries and is expanding. Having such a diverse clientele means the company has to meet the demands of the consumer and provide a diverse group of employees to embody the client. Expanding to foreign markets is not always an easy transition, but with the demand on Nike, Inc to provide apparel and shoes to the Olympics, the transition was necessary. As the company continues to grow, the need to be ever changing is a must. To stay on top of the market, Nike has provided employment to a vast variety of ethnic groups to meet the needs in each of the countries Nike houses stores or factories in. Being aware of the type of consumer one may interact with helps to keep Nike ahead in the diversity department. Nike prides itself on being a worldwide commodity with the ability to provide services to foreign countries but also to meet and

Nike Inc is an athletic footwear company founded in the United States, they also has athletic clothing and sporting goods. Nike dominates the sporting industry along side it's famous competitors; Adidas, Fila, Converse and Reebok (Locke, 2002). Regardless of it's competitors and the controversies‘ that rose from their success, Nike is currently the largest and most important athletic wear company in the world. They dominate the market and have a global presence all over the world. Significantly because they took advantage of globalization and outsourcing opportunities, it has allowed them to take over the market share for athletic footwear. But there was negative results from becoming a multinational corporation. We will be

I have chosen Nike to produce an analysis on. It is important for a company as large as Nike to keep abreast of their strategies and to remain competitive. Here is some background

During the late 80s and early 90s Nike was faced with a series of labor strike back at home due to unethical labor practices by its independent countries in third world countries. It is well known for Nike to outsource almost all its production from third world countries at cheap prices and sell them in U.S. market at an abnormal profit. The company began outsourcing its products from Japan where labor was competent and wages were very low. The living standards were raised which prompted Nike to outsource its products from Thailand, Pakistan and Indonesia since wages in these countries were extremely low and labor for these products were competent due to rapid development of the Japanese economy. The outsourcing of footwear products from Asian countries enables Nike to earn high profits and enjoy a competitive advantage over its rivals in the footwear industry. The company invests the high profits realized in marketing its products through celebrities. For instance, Michael Jordan was used to advertise the positive image of Nike Company (Lipschutz and James, pp. 87-96).

Nike is among organizations that are known globally. The headquarters of Nike are in Beaverton, Oregon and it has expanded to other countries in order for them to reach the markets which are untapped so that they can increase their profit margins. For a very long time now the organization has been sourcing its labor from other countries. This is because just as other corporations Nike is escaping the strict regulations which the United States gives them. They easily and readily find cheap labor in third world countries such as Pakistan, Taiwan, China, South Korea and Vietnam (Teather, 2005). This company views this cheap labor availability to be quite beneficial when it comes to the fulfillment of the needs of the customers while maintaining low production costs. The media has highlighted some of the malpractices that global companies such as Nike have bee part of. The paper will look at the cultural issue within Nike .it will also look at the social and ethical responsibility issues which Nike must deal with due to its status as a global organization.

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”