Case Analysis of Nike in South East Asia

Running Head: CASE ANALYSIS OF NIKE IN SOUTH EAST ASIA
Case study- Nike in South-east Asia
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2NIKE IN SOUTH EAST ASIA
EXECUTIVE SUMMARY
The paper aims at highlighting the major issues faced by the global shoe maker giant Nike in
their south east Asian business diversification. A number of criticisms regarding labor practices
and wage management have clouded the reputation of Nike and the company was forced to make
some operational changes in its overseas manufacturing units. However, company spokesperson
has not accepted the criticisms and have said them to be superficial and falsely acclaimed. They
said some minor issues were there which were mitigated effectively and no other issues are there
in Nike’s operational business. An in-depth analysis of the various criticism that were made is
done and how Nike responded to them is discussed in the paper. The strategic moves made by
Nike are mentioned and the impact on sales and revenue is also considered. A critical overview
of the Vietnam and Indonesian units are provided as most criticism was from these two south
east Asian units.

3NIKE IN SOUTH EAST ASIA
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
COMPANY BACKGROUND........................................................................................................4
DISCUSSION AND CRITICAL ANALYSIS................................................................................5
NIKE IN SOUTH EAST ASIA...................................................................................................5
CRITICISM IN INDONESIAN SUPPLIERS’ FACTORIES.....................................................6
CRITICISM IN VIETNAM SUPPLIERS’ FACTORIES...........................................................6
STRATEGIES AND MEASURES TAKEN BY NIKE..............................................................7
RECOMMENDATION AND CONCLUSION..............................................................................9
BIBLIOGRAPHY..........................................................................................................................10

4NIKE IN SOUTH EAST ASIA
INTRODUCTION
Nike is one of the most trusted shoe brands used by various sport organizations and sport event
sponsorship. The brand name of Nike itself is very influential and so if any criticism comes in its
way the impact is deep and impactful. Nike faces serious criticism from media and press
regarding its HRM policies of labor management and wage structure. It is claimed that Nike
provides its workers a very minimum salary even lower than the average base salary and ill-treat
the labors during their work hours. The Indonesian and Vietnam workers were humiliated and
were forced to work extra hours in order to achieve the market standards and supply targets (Bies
& Greenberg, 2017). The sales figures have remained unaffected till now but the seriousness of
the issue may have adverse effects on the company’s bottom-line in coming future. The paper
will find out the seriousness of the criticism in Nike’s supplier factories in Indonesia and
Vietnam. The aftereffects in sales figure impact will also be considered and such criticism will
turn down Nike’s reputation from market or will it remain unaffected is also a major area of
analysis of the paper.
COMPANY BACKGROUND
The company background of Nike needs to be understood before evaluating the concerned areas
of the paper. Nike is an American multinational corporation. The major business areas covered
by Nike is design, development, manufacturing, marketing and sales. The key products include
apparel, footwear, equipment, accessories and services. It is the largest supplier of athletic shoes
and apparel in the world. It is one the major sport equipment manufacturer globally. A number of
high-profile athletes and well-known sports teams are being sponsored by Nike. The trademark
of Nike is globally recognized and goes as “Just Do It’. The Swoosh logo is also globally
acclaimed and recognized. The current brand value of Nike is almost $30 billion, which is one of