Submitted by: Submitted by fvths96
Views: 281
Words: 850
Pages: 4
Category: Business and Industry
Date Submitted: 06/25/2013 03:06 PM
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...