Introduction There are some current issues that happen in Nike factory in Malaysia. There are some current influxes of workers from Bangladesh, India and some poor countries come to Malaysia to find their jobs due to low work opportunities in their countries and lack of labours in Malaysia. Citizen in Malaysia would like to find a better job more than work as a labour. There are 1,200 employees work at Hytex factory in Malaysia that has produced Nike T-shirts for 14 years. Nike factory in Malaysia violates major rights that affect the rights of workers. For example, one of its contract factories faced problems that they lived in an inconvenient environment, low wages and lack of providing passport to the foreign workers. Workers had given the …show more content…
Customers nowadays have higher request on the technology of the products. Nike uses technology to improve the quality of the product and services by creating new clothes quality such as fabric design. They can develop within advertising using technology through television, online media and website to create a personalized experience. Nike’s company also can able to enhance levels of digital metrics to analyse customer demand and revise. Nike’s company also must maintain its position at the top of the sporting goods industry by continuing to past the limits of sport wear technology. Besides, they can also differentiate their product with an air insole to make their shoes more comfortable. Last but not least, Nike also keeps up-to-date for their technology to make economic …show more content…
Generally, the rich people who have more income have the ability to purchase the Nike that are really expensive while the less income of people will prefer to buy the cheaper price of Nike shoes or focus on necessities only. The consumer will be affected by others that are in the same social class to buy Nike shoes. In occupation, the people who have high position and salary have the buying power to purchase Nike. However, the people who have lower position and salary need to save the money to purchase Nike. As a result, people who belong to the same social class have common buying preferences to buy
Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Product: As an athletic shoes producer, they try to provide better quality and more comfortable shoes that fit to the sport player through research and development. By claiming their shoes meet the physics need of different sports, which help the sport player to maximize their ability by protecting them and reduce the sport harm.
Sweatshops are factories that violate two or more human rights. Sweatshops are known in the media and politically as dangerous places for workers to work in and are infamous for paying minimum wages for long hours of labour. The first source is a quote that states that Nike has helped improve Vietnamese’s’ workers lives by helping them be able to afford luxuries they did not have access to before such as scooters, bicycles and even cars. The source is showing sweatshops in a positive light stating how before sweatshops were established in developing countries, Vietnamese citizens were very poor and underprivileged. The source continues to say that the moment when sweatshops came to Vietnam, workers started to get more profit and their lives eventually went uphill from their due to being able to afford more necessities and luxuries; one of them being a vehicle, which makes their commute to work much faster which in turn increases their quality of life. The source demonstrates this point by mentioning that this is all due to globalization. Because of globalization, multinationals are able to make investments in developing countries which in turn offers the sweatshops and the employees better technology, better working skills and an improvement in their education which overall helps raise the sweatshops’ productivity which results in an increase
Lots of people at a high level in society use the products they own to represent their social status. As what Solomon says in his article, “advertisers have been quick to exploit the status signals that belong to body language as well.” (169) Advertising gives them a good chance to show their material success, and the advertised products make them more of individuality. For example, Michael Jordan owns a Ferrari 512 which is a super sports car with an unaffordable price. Ferrari’s advertising tells the world how excellent and expensive the car is, so that his car could shows his wealth and success in his career and also his energetic and positive personalities. Being advertised, Jordan’s Ferrari is not just a vehicle but a symbol of his identity. There is no doubt that this advertised car makes Jordan much more of
Nike’s sweatshop manufacturing practices which can be seen through media have shown people that this company goes under the good guys images, these images which are displayed in their commercials show people that their employees are treated well and their happy in their working environment.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
Nike does not merely sell products these days. They spend billions of dollars for advertising contracts with famous athletes like Tiger Woods to increase the value of the brand by associating the factor of lifestyle to their products. The company's image has been damaged many times by press releases as well as a variety of NGOs who have long pointed out the inhumane working conditions in the production facilities of sporting goods manufacturers. This leads to the question whether should Nike orientate the regulations of the suppliers to the labor standards in their respective countries or those in the United States? The labor conditions are so inhumane that Nike at least should try to converse to the US standard to improve the situation. The following analysis of an abstract of Nikes’ Responsibility Concept, including SHAPE and their Code of Conduct, should give an insight into the difficulties of the Sweatshops.
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
Phil Knight started his shoe company by selling shoes from the back of his car. As he became more successful in 1972 he branded the name Nike. In the 1980’s Nike Corporation quickly grew and established itself as a world leader in manufacturing and distributing athletic footwear and sports' attire. The Nike manufacturing model has followed is to outsource its manufacturing to developing nations in the Asia Pacific, Africa, South and Latin Americas; where labor is inexpensive. It quickly became known for its iconic “swoosh” and “Just do it” advertisements and products. Its highly successful advertising campaigns and brand developed its strong market share and consumer base. But, the road has not always been easy for Nike; in the late 1990’s they went through some challenging times when their brand become synonymous with slave wages and child labor abuses. During this period, Nike learned that it paramount that the company understands its stakeholders’ opinions and ensures their values are congruent with their stakeholders. Nike learned that their stakeholders were concerned with more than buying low cost products; their customers were also concerned with ethical and fair treatment of their workers. Because Nike was unwilling to face the ethical treatment of its employees, the company lost its loyal customers and damaged its reputation. Nike has bounced back since the late 1990’s and revived its reputation by focusing on its internal shortfalls and attacking its issues head on. Nike nearly collapsed from its missteps in the late 1990’s. They have learned from their mistakes and taken steps to quickly identify ethical issues before they become a crisis through ethics audits. This paper is based on the case study of Nike: From Sweatsh...
Linda Lim, a professor at the University of Michigan Business School, visited Vietnam and Indonesia in the summer of 2000 to obtain first-hand research on the impact of foreign-owned export factories (sweatshops) on the local economies. Lim found that in general, sweatshops pay above-average wages and conditions are no worse than the general alternatives: subsistence farming, domestic services, casual manual labor, prostitution, or unemployment. In the case of Vietnam in 1999, the minimum annual salary was 134 U.S. dollars while Nike workers in that country earned 670 U.S. dollars, the case is also the similar in Indonesia. Many times people in these countries are very surprised when they hear that American's boycott buying clothes that they make in the sweatshops. The simplest way to help many of these poor people that have to work in the sweatshops to support themselves and their families, would be to buy more products produced in the very sweatshops they detest.
Another area of concern is the discrepancy of differences in East Asian worker regulations and wages compared to the North American standards. Much speculation has gone toward attacking Nike for their blatant disregard of American labour ethics, but Nike is having difficulty explaining their justification of meeting offshore requirements. For example, the legal age in Indonesia was 14, an age at which compulsory Schooling has ended. Nike was criticized for apparently having girls at this age working in their factories (which wasn’t true), and was shunned for inhuman labour practices according to American standards.
605, para.6). This move was not a positive look for Nike, because it could have been perceived by their consumers that they had something to hide by not supporting more efforts of ending sweatshop culture. However, a year later Nike begins to take responsibility for how they “handled the sweatshop issue”. Even though, it was only after the University of Oregon pulled its backing from the (WRC), Nike renewed its philanthropical commitment to the University and assembled a comprehensive public review of their corporate responsibility practices. In this report, Nike took responsibility for their neglect in several areas such as worker conditions in Indonesia and
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.