Slavery seems like an outdated term. Despite international efforts, however, the 21st-century form of slavery exists; child labor. These workers are exploited by the factories that they work for by serious problems such as unregulated working conditions. There are multiple companies that have factories that violate humane working conditions, one of the most prominent culprits being Nike. According to Global Exchange, an international human rights organization, 96% of all Nike shoes are made in three Asian countries -Indonesia, China and Vietnam.
Nike: The Sweatshop Debate Introduction The goal and purpose of this paper is to introduce Nike Incorporated and to present the sweatshop debate. Nike is an international company that designs, develops, markets, and sells athletic footwear, equipment, apparel, and accessories worldwide; operating in Europe, China, North America, Japan, and developing markets. Nike was able to take its business overseas thanks to globalization, through which they were able to outsource in an attempt to save money, improve production costs, and increase profits; this however made it fairly easy and enticing for them to exploit their outsourced workers – such as with the sweatshop debate. Nike was suspect of manufacturing its goods in developing countries where their workers were being exploited due to inexpensive labor and absence of union movements and human rights. Accusations consisted of health and safety issues due to a poor working conditions and long working shifts, low wages, and child labor.
Compared to its competitors, speed was something Husky had an advantage at. Husky’s thinwall system could mold the same number of margarine containers at a shorter cycle time compared to its competitor. With all the desirable attributes of Husky’s systems, buyers perceived Husky’s machines as superior as compared to others in the market and this possibly led to a base of loyal consumers. With loyalty in place, buyers were less price sensitive and Husky was able to charge a premium due to consumer’s increase in willingness-to-pay. The scope of Husky’s strategy was
Due to high number of products it has to be efficient in its operation. They need to make sure that manufacturing is in sync with the demand. Efficient operation process would remove errors and save up a lot on energy and cost for the company. Outbound logistic is also important part of Nike’s value chain. It is important to make sure that transportation and delivery of the final products is efficient.
The story of Nike and its suppliers’ well publicized ethical violations is one that contains shocking and upsetting images of children stitching soccer balls and underpaid workers being abused, but it is also shockingly understandable how Nike could have found themselves in this situation. Indeed many companies may have made the same mistakes in their attempt to grow and thrive in a competitive market, but in the case of Nike the mistakes
Some of the supplier companies paid meager wages to its worker and did not establish safe and healthy working environments for its workforce as stipulated in the best practice directives at that time. The examples of places where Nike sourced supplies from deplorable employee conditions include Pakistan, Cambodia, and Indonesia. The industrial rot in the factories in these countries culminated in unethical operations such as child labor, employee abuse and imposed overtime to exhausted and poorly remunerated workers (Klimkiewicz & Janusz, 2016). With Nike’s globalization effort came the criticism and scrutiny into the state of
One of the Foot Locker 's competitor is Wal-Mart because they are able in providing consumers with what they want with an affordable price, and one of the Foot Locker 's weaknesses and competitive deficiencies is high price comparing to his rivals. Wal-Mart offers the same products for an inexpensive price that consumers can afford without hesitation. Sports Authority is also one of Foot Locker 's competitors, and they offer the same product line as Foot Locker but for the moderate prices. The advantage of Foot Locker is that has a variety of sport apparel brands that consumers can find at one place and is unquestionably more practical
To sustain its competitive advantage over competitors, Nike has to take this to consideration). However, a large number of competitors in an industry usually indicates lots of demand for the products or services provided and this will help Nike to succeed in the long run. Suppliers: Nike outsources almost all of its footwear production to independent third party suppliers. As Nike has a minor control over quality of the products. This is due to Nike gets its merchandise generally from foreign manufacturers.
This allowed for the company to gain market dominance and eventually put them ahead of the competitors. We can see that Nike was able to make a great deal or profit and in addition to clearing the way for control of the market. This strategy however eventually hurt the company, which ended up in resulting in the negative publicity the company had faced. With the outsourcing of much of the product to other countries, Nike did give the jobs to other countries. Since the company was looking for the lowest possible cost for the product, this eventually resulted in the product being outsourced to sweatshops and towards child labor.
Nike converted the shoe industry (athletic) using innovations, but presently many individuals understand the enterprise by its sports celebrities and flashy ads. Therefore, the consumers most likely would ask if the company is a technology company or a marketing one. Nike has transformed from production-oriented company to a marketing-oriented one with their product being their marketing tool. The corporation has in the past collected sufficient information about the importance of marketing its product as the most important thing it should do (Gereffi, 2002). However, Nike needs to do more than sell its products and ensure higher customer satisfaction and improved customer experience.