Nike is one of the most successful manufacturers of athletic footwear, competing with Reebok, L.A. Gear and Adidas, as well as with manufacturers of casual footwear. In recent years, the company has expanded into the apparel market, to lessen its dependence on the highly fickle athletic footwear market, and has also seen significant opportunity in the international arena. Nike survived the stagnation in the industry of the early 1990s well, and is now one of the strongest companies in the industry from a financial standpoint. Nike's "swoop" trademark is protected and enforced by vigilant marketing groups at both companies. However, Nike has also been tainted by labor issues in Asian factories that were brought to light in the late 1990s. This research examines the reasons behind Nike taking its manufacturing overseas, the labor issues that have resulted, and how the company has dealt with those issues.
Nike was begun in 1964 as Blue Ribbon Sports; the name was changed to Nike in 1978. It began as a partnership between an MBA candidate and a former track coach who had manufactured running shoes in his spare time. The company built its reputation on its technological breakthroughs in athletic shoes, and helped to introduce specialized shoes for different sports. Prior to companies such as Nike bringing forth this concept, most athletes used general purpose athletic shoes regardless of the sport in which they were participating, or the strains it put on their feet. In addition to technology, Nike also brought comfort and fashion to the industry, although Reebok, one of Nike's closest competitors, was more closely attuned initially to the effect that stylish shoes could have on fashion-conscious consumers.
Nike has demonstrated marketing success as it has invested in research and development as well as innovative advertising to generate strong loyalty to its products. Its low-cost structure came under intense media scrutiny...