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1 Evaluate Nike S Response To Societal and Consumer Concerns Ab

Nike faced concerns in the late 1990s about labor violations by contract manufacturers. Critics argued Nike's response was more for damage control than reform. Going forward, challenges include combating future allegations while meeting growing product demands that require more manufacturing.

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Amit Pandey
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163 views1 page

1 Evaluate Nike S Response To Societal and Consumer Concerns Ab

Nike faced concerns in the late 1990s about labor violations by contract manufacturers. Critics argued Nike's response was more for damage control than reform. Going forward, challenges include combating future allegations while meeting growing product demands that require more manufacturing.

Uploaded by

Amit Pandey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Solved: 1 Evaluate Nike s response to societal and

consumer concerns ab

1. Evaluate Nike’s response to societal and consumer concerns about its contract
manufacturing.
2. What are the challenges facing Nike in the future?

Phil Knight and his University of Oregon track coach Bill Bowerman founded Blue Ribbon
Sports, later renamed Nike, in 1964. The idea, born as a result of a paper written by Knight
during his Stanford MBA program, was to import athletic shoes from Japan into the U.S. market
otherwise dominated by German competitors Puma and Adidas. The company initially operated
as a distributor for a Japanese athletic shoe company, Onitsuka Tiger, but also developed its
own brand of athletic footwear to promote in the American market. The company’s relationship
with Onitsuka Tiger ended in 1971, and the Nike brand was created in 1972 (“Nike” after the
Greek goddess of victory). The company was renamed Nike in 1978, and has grown to be the
largest worldwide seller of athletic goods, with approximately 19,000 retail accounts in the
United States and about 160 countries around the world.
Nike’s main popularity came from celebrity athlete sponsors. As the popularity of the Nike
product grew, so did its product demands and the need to produce more apparel to meet the
demands of customers. In contrast to its meteoric rise in the 1980s after going public, the late
1990s began a period composed of combating allegations about labor and human rights
violations in Third World countries in which manufacturing had been subcontracted. Nike’s
response to this issue has been considered by critics to be more of a damage-control stunt than
a sincere attempt at labor reform.

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