INTRODUCTION TO NIKE
• Est. in 1960 in Oregon • Phil knight and Bowerman- founder • Started small and now has covered U.S and international markets • Nike is now one of the biggest mfd. Of the world
• Most of the factories are located in Asia including Indonesia,China,Taiwan,India Thailand,Veitnam,Pakistan ,Philippines and Malaysia • Nike outsourcing contracts around 500 factories in 45 countries. Nike currently controls more than 45% of the US sportswear market.
• The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger, making most sales at track meets out of Knight's automobile. • The company's profits grew quickly, and in 1966, BRS opened its first retail store, located on Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end.
ANALYSIS OF CASE STUDY
• Child labour • Not satisfying customer needs • Ignorance of mkt.trends
In 1996-1997, Nike was accused of labor violations and human rights abuses in foreign countries (mainly Asian).
• Thousands of mostly young, female workers in Southeast Asia (Indonesia, Vietnam, China) were being exposed to reproductive toxins and suspected carcinogens. • Some workers were not earning a "living wage" even though they work oftentimes 12 to 14 hours per day. • Nike workers in Southeast Asia have suffered corporal punishment and corporal abuse. • Nike young female workers have suffered sexual harassment. • Nike workers in Southeast Asia have been forced to work overtime in violation of applicable laws.
Core issue of Nike
NIKE PRATICES CHILD LABOUR
• Children are not only the easiest to intimidate, they're also the cheapest workers. Twelve-year-old Tariq, one of thousands employed in Pakistan's soccer ball industry, which produces five million balls a year for the U.S. market,...