Nike and International Labor Practices - 1807 Words

Nike and International Labor Practices Nike has long been known as the only brand of shoes to wear. Since its inception in the early 1970s, teenagers have seen the brand’s â€Å"swoosh† as a mark of cool. With their celebrity endorsements with people like Tiger Woods, kids have wanted the shoes so that they could be like their sports star. Nike was headed to the top rung of the athletic shoe industry until it hit trouble in the 1990s with news leaking out about labor violations in its factories overseas. Executive Summary Nike’s company strategy is a clever one. One that founder Phil Knight thought of while still in school at Stanford. Instead of paying Americans to put together Nike’s shoes, Knight thought that it would be a better†¦show more content†¦Threat of New Entrants Up until 1997, Nike did not have to worry about new companies taking away much, if any, of its market share. With Nike’s clever marketing scheme to ingrain the brand name’s â€Å"swoosh† into every person in America with the use of huge sports stars, no company stood to make any dent in Nike’s market share. But when America found out that their beloved shoes were being made by 12-year-olds being paid $2.50 per day in Indonesia, many turned anti-Nike and no longer promoted the â€Å"swoosh† (Glenn). This is when new symbols like Adidas’s three stripes logo came into public view. These other brands started to take away some of Nike’s market sh are and these new logos began to be seen all over America in place of Nike’s. Buyer Power The nineties were a time where Nike’s potential customers showed how much power they have over Nike. When word got out about Nike’s use of underage workers and the bad conditions they are forced to work in, its customers decided to not buy Nike’s products and consequently, the company’s revenues fell sharply. People discovered that a typical Nike shoe costs only $22.50 for Nike to make and they sell it for close to $100 while paying the laborers who made the shoes not even enough to live on. Stories of people being killed in Nike’s overseas factories and working in conditionsShow MoreRelatedNike And International Labor Practices1207 Words   |  5 PagesHitting the Wall: Nike and International Labor Practices Nike is one of the most popular and successful footwear brands, and there are many manufacturing factories in different countries. In this case, it talks about Nike’s international labor practice between1980s to 1990s. 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