Nike, Hitting The Wall Essay

3845 words - 15 pages

Nike has built up their brand name through marketing; the result is one of the world's best known corporate trademarks. However since it was founded 19631 the company has become a symbol both of the benefits and risk that lie in globalization. The success of Nike is unchallenged, however since the beginning of the 1980s Nike has confronted several conflicts where it was criticized for its international labour practices. The strategy of outsourcing all manufacturing to cheap labour regions and focus the resources on aggressive marketing which had given Nike their comparative advantage now seemed to be the source of their problems. Nike's powerful trademark might have made them the ultimate target for activists wanting their message to be spread over the world.Jeff Ballinger, American labour activist, had worked in Indonesia for many years but had not got much attention when he published articles about the conditions in the factories. In the early 1990s this was changing as a rare wave of strikes swept across Indonesia and together with Ballinger's articles started a wave of criticism where Nike got in the centre.This paper will discuss the accusations against Nike during the 1990s. The aim is to evaluate them and actions taken by Nike to understand what results the actions had and if there could have been other ways to handle the situation. In the paper we use facts from the case 2:1 in Translational Management when no other sources are given.Problem defenitionFrom start the Nikes business strategy has been based on the idea of no in-house production. This made it possible to use the suppliers that made the best offer and to focus on their marketing. For a long time this was a very successful way of acting and in the beginning of the 1990s they started to use suppliers in Indonesia. At the same time Jeff Ballinger started to study the factories of Nike's suppliers in Indonesia and found that the production was taking place under very poor and often dangerous conditions. However the response he got from Nike when he published his foundlings was "we haven't got any production".According to Ballinger the situation was clear, the workers in the developing countries manufactured Nikes products under sometimes very poor conditions. However, Nike was competing on the global market and the pressure on them to deliver better results was intense. By not having in-house production they had been able to move their production to the cheapest supplier possible, which had been part of the reason to their success. Nike's dominating position as a customer also made it impossible for the Indonesian factories to change the situation. They were too dependant on Nike as a customer. The question of responsibility came to be the key issue in the conflict.With this background we come to the question, how could multinational companies act in a responsible way and what factors are influencing their actions and the result of the actions? As mentioned in the introduction...

Find Another Essay On Nike, hitting the wall

Marketing and history of the new Air Jordans

2552 words - 10 pages them." Tyson Frodsham, a high school sophomore who lives near Nike headquarters, agreed. "I'd probably hang them on a mantle or on my wall or something," he said. (USA Today 2/1/02)It was not hard to get the word out about these new sneakers, they were all over the news, there were commercials promoting them, and everyone was talking about them. The Air Jordan launch dates were moved to Saturdays in 1998 because kids were skipping school to get

The Temple of Athena Nike Essay

1099 words - 4 pages 50 B.C.E. The achievements of Athens in this time include the Pythagorean Theorem and the Socratic dialogues. The epic Trojan War was said to have occurred in Mycenaean times as well. So were the Ionic Greeks who built this ancient temple. ( ancient In the style of Ancient Greece, the Temple of Athena Nike is filled with symbolism. Its wall is covered in a magnificent fresco, which is still of interest

Solutions to "Too Big to Fail"

2278 words - 9 pages money should Nike go under. Since the “too big to fail” bailouts in 2008, several improvements have been made and significant changes have occurred. Though the Dodd-Frank Wall Street Reform and Consumer Protection Act, customer corporate social responsibility standards, and customer use of social media exists, there are still several advancements that must be made before the “too big to fail” issue will be solved. Congress and regulatory

Jennifer Government

811 words - 3 pages . Hack Nike is tricked into signing a contract by John Nike from marketing. The contract stipulates that hack has to murder kids who buy the hot new Nike sneakers in order to build street credibility for the shoe, allowing Nike to sell each pair of shoes for $2,500. As the story develops, Jennifer Government is determined to put John Nike in Jail, and use whoever she can to get them there; however, everyone has a weakness, and John Nike knows

Nike Financial Analysis

1568 words - 6 pages Nike Financial Analysis Investing in a company has certainly changed over the years. Financial information is literally at one's fingertips via the internet. In today's fast paced corporate environment companies are under tremendous scrutiny to maintain their edge. The company I am evaluating is NIKE. This Financial analysis will consist of the following: Ratios from the Income Statement, Statement of Owner's Equity, and Balance Sheet

lime case study

4291 words - 17 pages LIME PUMA PUMA INDIA CASE TEAM INGENIOUS Prakhar Agrawal Sahil Kalra Suraj Kumar Menon Team Code: XLRI9768 XLRI 2 OUTLINE Player Profiles (Nike, Adidas, Reebok, Puma)2 Industry Overview- Indian Sportswear Market, PEST Analysis1 Consumer Insights from Primary Research3 SWOT Analysis for Puma4 STP Analysis5 Strategy for Penetrating the Target Market6 3 OUTLINE Player Profiles (Nike, Adidas, Reebok, Puma)2 Consumer Insights from Primary

No Logo: Taking Aim at the Brand Bullies - The Manufacturing of Human Culture.

1658 words - 7 pages , especially young people, to act on this rage and suspicion? (xx-xxi).In her book, Klein argues that globalization is a process whereby corporations discovered that profits were not in the making of products (which they outsourced to workers in developing countries), but in creating branded identities that people adopt in their lifestyles. By wearing Nike, they become an athletic person since Nike decided to brand themselves as the "world's best

Efforts Made to Improve Football Safety

522 words - 2 pages . Some helmets have been equipment with sensors to monitor the player’s head trauma during games and practice. Even major sports clothing companies, such as, Nike, Under Armour, and Rebok have developed new tighter fitting materials laced with thick memory foam to better their overall protection. Due to the violence and hard hitting football is known for new rules have been installed to better protect players from unsafe play. Roughing the

adidas market study

1311 words - 5 pages division should represent at least 65-70% of Adidas brand sales while the Sport Heritage division will have a share of 25-30%.The main competition for Adidas brands and products comes from the products and brands of Nike, Puma etc. ( There is no such differential advantage of price therefore it is easy for consumers to shift from one product to other product. The athletic market consumers are quality sensitive and they have nothing to

All the main buildings in the acropolis.

1160 words - 5 pages divided the central corridor into three parts. The Doric columns recall those of the Parthenon, although they are much more severe. Flanking the central gate-hall are two chambers. The north one was used as a painting gallery, while the south chamber, although never completed, was most likely intended as a sculpture gallery and as an entrance to the temple of Nike. The Doric architecture of the building forms a perfect combination with the Ionic


674 words - 3 pages Hitting my face with a particular but comforting sting, the chilly night greets me calmly as I quickly walked down the steps of my new home. Bearing the coldness in mind, I swiftly zipped up my Nike sports jacket, making sure my hood was covering my ears. I didn¡¯t want to get a cold. An ajoshi (Korean middle aged man), closing his store threw me a look of insanity as I pushed down the street towards the Korean university. I didn

Similar Essays

Hitting The Wall: Nike And International Labor Practices

4307 words - 17 pages Case Study"Hitting the Wall: Nike and International Labor Practices"Nike's strategy of shaving costs caused ethical dilemmas that ultimately damaged its reputation. Nike outsources all of its manufacturing. This approach has provided Nike with huge profits, "from a 1972 level of $60,000 to a startling $49 million in just ten years" (Bartlett, Ghosal, & Birinshaw, 2004). "Production is now globalised, with different countries concentrating on

Credit Cards Essay

4601 words - 18 pages their growth has frozen and never started again. They penetrated new markets successfully, but were not able to keep up the standards they had set before. They focused on new areas of business so much that they forgot to do the old simple things right. ( Despite all these efforts the industry was standing still. There were different reasons for this such as the U.S. market hitting the recession point, Nike launching a massive 3-year

Nike: Just Do It Essay

3434 words - 14 pages Introduction Nike, Inc. is a sporting goods and apparel company founded by Bill Bowerman and Phil Knight in 1972. Nike, being a world-wide phenomenon, has “more than 35,000 employees across six continents and in more than 160 countries around the globe. Through our suppliers, shippers, retailers and other service providers, we directly or indirectly employ nearly one million people” (Nike, Inc.). All this is done to help Nike fulfill their goal

Manufacturing Practices Of The Footwear Industry: Nike Vs. The Competition

2314 words - 9 pages Enterprise Magazine, 28 December, 2011. Web. 29 March 2012. Mattioli, Dana. “Nike's Footwork Yields Long Lines.” The Wall Street Journal (2011) Web. 29 March 2012 “Nike Foamposite Galaxy Release Cancelled, Riots Ensue in Orlando.” International Business Times. The International Business Times, 24 February 2012. Web. 29 March 2012. Ruiz, Mariapaz D. “Supply Chain: Nike, Inc.” University of Phoenix (2009) Web. 29 March 2012. Van Dusen, Steven. “The