Globalization Of Nike

Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses. Nike and Precision Castparts are the only Fortune

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 started to open up manufacturing factories in countries like Indonesia, Pakistan and Vietnam. Due to the wants of Nike to increase their revenue they tried to outsource the labor of their products since labor work in the US is very high and expensive. This was a bad idea due to that Indonesia pays their workers extremely low wages. Pakistan doesn’t have an age limit for them to be able to legally to work so many children in Pakistan were making

A positive impact of Nike’s offshoring strategy was that it allowed Nike to meet the growing market demand of its customers that resulted from global economic growth. It created convenience so customers in other parts of the world could easily acquire Nike’s products and increased customer satisfaction as a result. Moreover, their strategy had a positive impact on the quality of the products offered in various markets. Since labor in Asian markets was able and very willing to meet the quality standards of Nike’s demands in order to retain production contracts, they could meet the expectations that Nike customers presented (Locke, 2002).

This can be easily answered by looking at the global economy. The global economy consisted of many companies using third world countries as their base for their factories that make their products. All these companies are backed by the World Trade Organization (WTO). According to the article: “Ten Arguments against the WTO,” the WTO is not concerned with where a company manufactures its products or the conditions that it takes place in. The reason that Nike gets away with having factories as such in Vietnam, is that they are backed by the a very powerful world organization, the WTO, thus allowing Nike to make huge profits.

The key economic factor that we have over here that Nike company dose not involve in production in any kind of form , instead; it will design the logo or the format and it’s contracts with several hundred factories around the world to manufacture ( Just Do It ).

Nike subcontracts the production process of its footwear to 900 contract factories located worldwide with Asian developing countries such as China, Indonesia and Vietnam accounting for the bulk of total world production. Production of the footwear is based on a vertically integrated model. In the primary stage, raw materials such as rubber, leather and plastic are extracted from places located in close proximity from the factories. In the secondary stage, the extracted resources are sent to the factories or “Sweatshops” for manufacturing. It should be noted that the whole production process of Nike footwear are being carried out by independent private contractors.

Nike has therefore no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range.

Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike skateboarding, and its subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike is the world´s leading supplier of athletic shoes and apparel, as well as a major manufacturer of sports equipment, which operates in more than 170 countries. So it is engaged in the design, development and worldwide marketing and selling of footwear, equipment, accessories, apparel and services. The motto of this company is: To bring inspiration and innovation to every athlete in the world.

Nike is the world 's leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories for a range of sports and fitness activities. Nike is headquartered in Beaverton, Oregon and owns facilities in Tennessee, North Carolina and The Netherlands. The company operates in the Americas, Europe, the Middle East, Africa and Asia Pacific.

The Nike production system can be stratified into three classes; developed partners, volume producers and developing sources (Donaghu & Barff, 1990). Although Nike has developed different levels of supplier relationships with each class the production network is commonly classified as a ‘virtual enterprise’ where independent firms work together based on shared values and a common way of doing business to exploit a business opportunity through joint manufacturing (Pfohl & Buse, 2000).

Nike Inc. is one of the largest companies in the world that specialize in the design, development, and worldwide marketing and selling of athletic footwear, apparel, equipment, and accessories. It currently has about 26,000 employees, 20,000 retailers in the U.S., 200 in other countries, makes roughly 30.7 billion in sales, and has a global market share of 4.9 percent (History of Nike, Inc., n.d.) The company operates through six business segments—North America, Western Europe, Central & Eastern Europe, Greater China, and Japan—Which focus on the design, development, marketing, and selling of their products and its headquarters is located in Beaverton, Oregon. Nike sells their products through Nike retail stores, their website, Nike.com, and through a mix of other independent merchants and licensees—such as Footlocker and Champs (MarketLine, 2015).

NIKE, Inc. is a multinational corporation, found in 1965 as Blue Ribbon Sports by Bill Bowerman and Phil Knight. It is headquartered at Beaverton, Oregon, US. Nike works to design, develop, manufacture, market and sell apparel, footwear, equipment, accessories and services. BRS was renamed Nike in 1971.

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.

Nike is an American brand that is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel and accessories. Headquartered in Oregon, Portland, it is currently the world's largest supplier of athletic shoes and apparel (Trending Top Most, 2017), generating a total revenue in excess of US$34billion based on its Audited Account FYE 31.5.2017. Nike had a worldwide direct workforce of more than 70,000 at the end of fiscal year 2017 and another 650,000 indirect workers operating from its contract manufacturing and retail