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Written by:

Randy A


Date added:

December 27, 2015








No of pages / words:

3 / 678


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How did this happen? I believe that the loss was due to a serious image problem that Nike had developed over the previous decade that revolved around child labor practices, low wages, and employee safety in overseas manufacturing facilities. Nike outsourced their manufacturing to countries like China and Indonesia to shave costs and in turn spent that saved money on marketing...
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All products were made by independent contracting factories resulting in a manufacturing firm with no physical assets. This allowed Nike to manufacture their products in overseas facilities at very low cost when compared to U.S. manufacturing facilities, and when labor cost became too high due to the local economy becoming richer; Nike could easily relocate because it was not constrained by physical overseas assets...
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