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

2314 words - 9 pages

Of all the major fads and trends surging through popular culture, none is more prevalent than flashy footwear. Mainly with athletic sneakers, the footwear industry has experienced a major influx in the demand for the output of iconic shoes. The current manufacturing practices of the sneaker industry, in particular companies such as Nike, Reebok, Adidas, and New Balance, takes place all over the globe. With the industry experiencing severe competition and the product requiring intensive labor, firms are facing extreme pressure to increase their profit margins through their sourcing practices. No competing sports brand is more eminent and internationally established than Nike, Incorporated. Introduced to the world in 1964, Nike has made its way to the pinnacle of notable fashion and athletic brands with the acquisition of major subsidiary brands such as Hurley, Converse, and Jordan. Nike is now the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment. Due to the brand’s association with legendary Athletes and futuristically designed sneakers, Nike has fueled fervor among consumers, in which many will result to desperate measures just to own a pair of Nike’s iconic footwear. Aware of the risks and danger associated with the releasing of these highly sought-after sneakers, Nike has become infatuated with consumers’ overwhelming desire to purchase their product and has begun to release their most highly demanded sneakers in limited quantities to generate even more chaos and increase their profit margin. Due to the fervor that Nike has instigated over their product and the danger that it has brought upon shipment transporters, retailers, and the dedicated customers, Nike’s new-release sneaker practices can and must be reformed.
Nike’s current footwear policy is truly capitalistic. While the company claims that they have their employees’ and consumers’’ best interest at heart, Nike’s main goal is to cut expenses and maximize profits. Nike currently enjoys a 47% market share of the domestic footwear industry, with sales of $3.77 billion (Van Dusen). Nike has been manufacturing throughout the Asian region for over twenty-five years, and there are over 500,000 people today directly engaged in the production of their products (Van Dusen). They utilize an outsourcing strategy, using only subcontractors throughout the globe. Their majority of their output today is produced in factories in China, Indonesia, and Vietnam, but they also have factories in Italy, the Philippines, Taiwan, and South Korea (Van Dusen). In the1990’s, Nike was investigated for underpaying worker in Indonesia, child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam. They later faced further allegations of wage law violations, excessive overtime, physical abuse, and unsafe working conditions which surfaced from its suppliers and in 1992 (Ruiz 1). Nike responded to its sweatshop labor image by developing its...

Find Another Essay On Manufacturing Practices of the Footwear Industry: Nike vs. the Competition

Life vs. Profit: Ethics and Competition in the Health Care Industry

1636 words - 7 pages ETHICS AND COMPETITION IN HEALTH CARE 9Running head: ETHICS AND COMPETITION IN HEALTH CARE 1 Life vs. Profit: Ethics and Competition in the Health Care IndustryAugust 7, 2014Shawn M. WeedonNew England College of Finance AbstractUnethical conduct and behavior has become more of a reality in the health care industry because of the poor decisions the health insurance companies tend to make. Over the years, there has been ongoing concern regarding

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

Competition in the Global Wine Industry.

1573 words - 6 pages year, selling more and building the assets and production capabilities. Robert Mondavi may try may try down-market stretch and steal the portion of the middle market share. Nevertheless, the biggest threat is the international competition as many international producers paved the way to the American market by buying American wineries and won 20% of market share.The industry attractiveness/competitive position

Elan and the Competition Boat Industry

1401 words - 6 pages Business LetterTiwanna RobinsonACC 304Tiffin UniversitySeptember 7, 2014Dear Client:Thank you for the privilege of allowing us to provide you with year-round tax services. We are committed to providing you the highest quality of tax preparation and excellent service. This engagement letter expresses the terms and conditions under which we will provide you with tax services, and it outlines responsibilities for each of us.Preparation: We will

The Success of Nike.

1928 words - 8 pages number of potential manufacturing countries and cost of labour, purchasing quantities, information about customer demand, competitors, competitor strategies, shopping patterns and the economic environment has help Nike to analyze today's world. The training shoe manufacturing has shifted their financial investment from South Korea and Taiwan, now considered to be higher-cost production locations, to lower-cost ones such as Indonesia, Thailand and

Nike vs Adidas, market and comprehensive competition analysis.

4090 words - 16 pages was named for the Greek winged goddess of victory. The founders were Bill Bowerman, a track & field coach and Phil Knight, a runner under Bowerman. From their modest start, Nike has grown to be a global leader in the sporting goods industry. It is recognized as the world's leading designer, marketer and distributor of athletic footwear, apparel, and accessories for a wide variety of sports and fitness activities. For Nike, an established and

Nike vs Adidas, market and comprehensive competition analysis

4090 words - 16 pages was named for the Greek winged goddess of victory. The founders were Bill Bowerman, a track & field coach and Phil Knight, a runner under Bowerman. From their modest start, Nike has grown to be a global leader in the sporting goods industry. It is recognized as the world's leading designer, marketer and distributor of athletic footwear, apparel, and accessories for a wide variety of sports and fitness activities. For Nike, an established and

The Curse of Competition

1987 words - 8 pages about their abilities and limitations, set goals, handle loss, and how to work with others. The lessons that children learn through competition stay with them throughout their lives and prove to be beneficial in academics and the workplace. However, the world is quickly turning its back on the importance of competition. From schools eliminating the Valedictorian Award to the “everyone is a winner” motto used in most youth sports leagues, the

The Danger of Competition.

1064 words - 4 pages can make the world a better place to live in, it also causes rivalry-specific hatred and violence. People and companies push harder in order to out-do the competition, which often results in dishonest practices and ruthless betrayal. Even if one person rises above the others in terms of sports or academics, their achievement is not necessarily a good thing. Alfie Kohn, the author of "Why Competition?," says: "One extremely successful debater on

The Art of Competition

821 words - 4 pages studying and doing well in school because we all want a great job later on. The pressure of competition comes into play and how it is so difficult to pursue a career knowing that another individual can have it. The requirements that are expected from people develop into more self-seeking individuals. Competition for having a career becomes very stressful and exhausting. Long hours of studying, restless nights are all attributes of what a college

Nike’s Business-Level Strategies: How They Have Changed the Nature of Industry Competition

981 words - 4 pages ancient Greek goddess, Nike, which translates to mean victory (Dermesropian et al., 2004). Nike has now evolved into a global company that deals in the process of designing, developing, and marketing of the apparels, sports products and footwear, among others to a global network of markets. Nike possesses a leading position as a supplier of sports products in the international market. The Sports and Apparel industry is the most competitive

Similar Essays

Athletic Footwear Industry Focus: Nike

6433 words - 26 pages . Again, there is a wide price range to attempt to target as many consumers as possible.Adidas has long been a huge dominator of the world football (soccer) market. In many ways this has defined their position in the overall footwear industry and is one of the main reasons why they have expanded to the worldwide organisation that exists today. In recent times their dominance has come under fire by Nike. Adidas who have for a long time rested on

Nike Sprints Ahead Of The Competition

2621 words - 10 pages 2006, p6)This support is done by formulating an appropriate Marketing Research Design. This is a strategy that defines the particular marketing research efforts to be made and how they will be conducted. For the Nike situation the following design is recommended in the following stages.Exploratory Research - It is recommended that a series of focus groups are conducted which involve sales employees working in retail outlets for Athletic footwear

Cereal: The Manufacturing Industry Essay

1067 words - 4 pages new firms from entering the industry, are present. Examples of entry barriers include patents, brand loyalty and trademarks. Long-run economic profits are possible for an oligopoly, and non-price competition is a significant way to compete with other firms in the same market. Most of the non-price competition in an oligopoly comes from product differentiation. The cereal manufacturing industry is an oligopolistic market because it exhibits many

Globalization Of The Auto Industry: Competition And Cooperation

2319 words - 9 pages try to solve the problem of carbon emissions. The negative sides of the automobiles cannot only be collective, but the collection of the positive sides should also be appreciated with a global perspective. Can the feeling of success and safety of owning a car be directed to environmental sustainability? Both competition and cooperation should be mutually pursed. Despite competition between U.S. auto industry and European Industry, the need to