Nike Case Study

1001 Words5 Pages
This paper will examine how “NIKE Inc., came under scrutiny for various unethical practices, during its global expansion. The writer will further explain the impacts of the company strategy along with the company’s response to the situation. This paper will conclude with the author's opinion on the “NIKE” response of this case and the authors bias on the consequences of the company’s supposed action to recommendations made. The problem According to the case study presented by Richard M. Locke in 2002. The 1962 NIKE, INC., was the world leader in athletics product production. One of its co-owners Phil Knight recognized an opportunity for the sale of lower-cost, high-quality footwear, and other athletic products at a higher-cost in countries like the United States and other parts of the world at a competitive advantage over Adidas. NIKE then decided to outsource shoe production to undersell its competitors and take the marker lead while it concentrated on more design and marketing (Locke, 2002, pg. 4-9). The first offshore factory was initially with two Japanese manufacturers, however, according to (Locke, 2002, pg. 5), Japanese economic crisis and issues with the dollar/yen Forex rate which resulted in the supposed “Nixon shock” forced Nike to commence seeking even lower-cost production alternatives. Nike’s “expansion strategy” involved moving its athletic wear production away from their headquarters in Beaverton, Oregon, U.S.A., into Indonesia, Cambodia,

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