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Outsourcing with Nike

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Outsourcing with Nike
Outsourcing Table of Contents:

No. Desc. Page No.

1. Outsourcing 3
1. Method 3
2. Summary 3
4. Overview/history of company 3
5. Reasons for outsource 3
6. Offshore or domestic 4
7. Pros and Cons of outsourcing to third world countries 5
8. Alternative recommendations 7
9. Conclusions:Is outsourcing a good thing 8
10. References 9

Method: Investigation on outsourcing within business. The outsourcing of trainer companies within developing countries with particular emphasis on Nike outsourcing history.

Summary:

Overview/history of company;

Nike is one the leading shoe and athletic clothing company in the United States and probably one of the largest in the world. In 1993, Nike's yearly revenue became as large as the NBA, NFL, and Major League Baseball's television deals, ticket sales, and merchandising sales combined. In addition to their phenomenal sales, Nike has marketed itself so thoroughly that it has literally become a household name. A large percentage of NBA players wear Nike shoes, with a majority of those under contract to do so. The percentage of professional football players and Major League Baseball players has similar numbers of patrons. Nike's business is far reaching however, is not limited to professional sports. Multiple colleges and universities teams have worn Nike shoes and clothing under endorsement agreement and the company has those endorsement agreements in place wit a view to peer approval to further promote the business. The scope of this extends beyond the United States, as Nike paid a massive two hundred million dollars in an endorsement deal with the Brazilian National Soccer Team.

Reasons for outsource;

Nike has a reputation for designing but not manufacturing their products. The manufacturing was outsourced. Nike has hired subcontractors in China, Indonesia, Vietnam and Thailand, and independent factories in Argentina, Brazil, India and South Africa to manufacture its products. The reason for this outsourcing is lower



References: .. ( Feb 2011). The Foundation of Nike Brand. Available: http://www.123helpme.com/view.asp?id=150458. Last accessed 27 Feb 2011. How to Internationally Outsource Manufacturing | eHow.com http://www.ehow.com/how_2052365_internationally-outsource-manufacturing.html#ixzz1FGyQeclq Last accessed 28 Feb 2011

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