Nike Case Summary

In 1997 a Vietnamese woman died in Nike factory due to an accident

while making sneakers

During 1980 and 90s the factory was plagued by several incidents

involving under aged child labor, coerced overtime in China, dangerous

working conditions in Vietnam

There has been widespread protests due to media coverage and several

university students started to boycott Nike products

Before these attacks it was one of the coolest and successful company

Revenues $ 60,000 in 1972 to $ 49 million in 1982

By 1998 Nike controlled over 40% of $14.7 billion athletic footwear market.

Growing force in the $ 64 billion sports apparel market.

Its strategy was path breaking: out sourcing all its manufacturing

Brand identity with celebrities, Michael Jordon and Tiger Woods

Before these attacks it was one of the coolest and successful company

Revenues $ 60,000 in 1972 to $ 49 million in 1982

By 1998 Nike controlled over 40% of $14.7 billion athletic footwear market.

Growing force in the $ 64 billion sports apparel market.

Its strategy was path breaking: out sourcing all its manufacturing

Brand identity with celebrities, Michael Jordon and Tiger Woods

By 1990s it became one of the most successful and best known brands

But by late 1990s there came out a ironic part of the story

Underside of the low paid non American workers

Initially the out soucing was done to South Korea and Taiwan but as these

countries started becoming rich they shifted to China and Indonesia

Indonesia has become a critical location with six factories supplying manufactured footwear.

Wages were low, workforce docile and foreign investment was needed.

When Nike was trying to settle its operations in Indonesia there were

widespread strikes and union politics

Among them was Jeff Ballinger who was concerned about the difference in

wages between rich and poor countries

Documented the workers conditions

Out of 1700 labour violation cases only 12 were prosecuted, Why?

In 1990s media was giving...