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Transcript of Nike Outsourcing
Opposition : The good, the bad and the ugly.
How Nike "Just Does It."
Outsourcing is what has made Nike into the billion dollar industry that it is today. It is also what has helped Nike become the Industry leader in footwear.
Nike is currently outsourcing to multiple countries including: China, Indonesia, Vietnam, Taiwan, South Korea, and the Philippines.
Half a million people throughout the world have been hired to help produce their products.
Nike even outsources their advertising component!
*Nike outsources ONE HUNDRED PERCENT of their shoe production.*
Advantages of Outsourcing
- Nike is able to employ workers for less and are able to pay less for plant operations.
-Outsourcing to different countries is much cheaper for them.
- Because Nike can efficiently produce their product and cut costs through outsourcing, they are able to use that saved money to price their products competitively.
Finances and Risk Reduction
-Through outsourcing outside the United States, Nike can bypass some of the taxes they would have to face.
-When outsourcing to subcontractors, Nike has less risk with insurance liabilities.
Most recognizable brand in the footwear industry.
Nike is known for their success in outsourcing practices.
They are currently the leader in the industry with 47% market share.
Enjoying sales of $3.77 Billion.
First off, what do YOU think Nike is good at?
Why we chose Nike
Effects on U.S. Economy and Job Loss
Lack of Customer Focus
Threat to Security and Confidentiality
Loss of Managerial Control
Unsafe and Abusive Labor Practices
Extreme Global Weather Events
Remained true to their mission.
Leaders in innovation.
Take a Risk
The act of obtaining goods or services from an outside or foreign supplier in place of obtaining the goods or services in house.
Outsourcing allows for companies to maintain higher quality at a lower price. Instead of a company doing all the work by themselves and potentially giving up quality they hire outside parties to provide higher quality products/services at a lower cost.
A company can successfully do this by finding areas where they can cut costs while still maintaining a high quality standard for their product or service they are outsourcing.
Never Stop Running
1970: Nike began outsourcing to S. Korea
1991: Large public outcry for Labor Abuses
1998: Nike Steps up to fix the problem
2011: Nike Company still feels the backlash
not fixing their mistake earlier