Nike : Nike, Inc.

3411 Words Jul 31st, 2014 14 Pages
Nike was originally named Blue Ribbon Sport when Bill Bowerman and Phil Knight founded it in 1964. In 1971, the company was renamed to what is known today as Nike, Inc. The word “Nike” is taken from the goddess of victory in Greek mythology. The company’s focus was to sell running shoes priced at low cost that was made by a Japanese manufacturer. In the 1970s, the company incorporated and started selling shoes under the Nike brand with its trademark logo, the “Swoosh” designed by Carolyn Davidson. By the 1980s, it had gained 50% market share in the United States. Today, Nike has over 700 stores worldwide along with corporate offices in 45 countries and is considered part of the textile industry that engages in selling of footwear, apparel, sporting equipment and accessories. According to Forbes, Nike was named the most valuable business in sports and reported revenues over $25 billion in 2013 with assets worth over $18 billion.1 Nike contracts out the manufacturing of its products and in the past it has chosen to do so in countries across the globe in South America, North America, Eastern Europe, Africa, and Asia. Nike often chooses suppliers in low-wage countries so that the company can keep the production cost low.

Nike Inc., although headquartered in Beaverton, Oregon, outsources the production of its products around the world. Overseas, Nike pays the local minimum wage in the respective countries. However, the issue is that often the minimum wage in these…

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