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What’s Everyone Wearing ? . NikE’s. Where does Nike produce its shoes?. During the 1970's, most Nike shoes were made in South Korea and Taiwan.
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What’s Everyone Wearing ? NikE’s
Where does Nike produce its shoes? • During the 1970's, most Nike shoes were made in South Korea and Taiwan. • When workers there gained new freedom to organize and wages began to rise, Nike looked for "greener pastures." It found them in Indonesia, China, and most recently Vietnam countries where protective labor laws are poorly enforced and cheap labor is abundant. • Also in China and Vietnam, the law prohibits workers from forming independent trade unions. • This was also true in Indonesia until 1998, when dictator General Suharto was overthrown. These three countries continue to be the major places where Nike shoes are made.
The minimum wage? the increasing of the minimum wage • In April 1999 when the Indonesian government announced that it was increasing the minimum wage to 231,000 rupiah/month ($26US). • Nike for the first time announced that it would raise wages for its Indonesian factory workers higher than the legally required minimum. • Their new wage was a minimum cash wage of 265,000 ($30US) and a bonus package that adds up to 332,000 ($37.50US). • While this is certainly a step forward, the wages are still a far cry from a living wage. An Indonesian wage study released by Global Exchange shows that 332,000 rupiah/month ($37.50US) is needed to cover the basic needs of one person. A living wage, which is a wage that helps cover the needs of a family, not just one worker, would be twice this figure, or 664,000 rupiah/month ($75US). • Moreover, Vietnamese and Chinese workers still get poverty wages. In all three countries, $4 a day would be considered a decent wage. Nike, a company with $8.7 billion in revenue in 1998 that sells its shoes for $150, can well afford to pay its workers such a meager sum.
Something that surprised meHuman rights concerns • During the 1990s, Nike faced criticism for use of child labor in Cambodia andPakistan in factories it contracted to manufacture soccer balls. Although Nike took action to curb or at least reduce the practice of child labor, they continue to contract their production to companies that operate in areas where inadequate regulation and monitoring make it hard to ensure that child labor is not being used. • In 2001 a BBC documentary uncovered occurrences of child labor and poor working conditions in a Cambodian factory used by Nike. In the documentary, 6girls were focused on, all of who worked seven days a week often 16 hours a day.
Nike Campaign • Nike is one of the largest, most popular, and most profitable shoe and clothing companies in the world. But the reality for many workers overseas making Nike shoes and clothing is far less rosy. • Workers are paid wages insufficient to meet their basic needs, are not allowed to organize independent unions, and often face health and safety hazards. • They hope that by putting pressure on Nike, the industry leader, other shoe companies will follow suit and make much needed improvements. • In just a few years, public pressure has reaped a measure of success by forcing Nike and other shoe corporations to promise to make changes. Still, a great many improvements are needed and the anti-sweatshop movement still must strive to give workers a voice. • When the Nike campaign began in 1996, Nike was not even paying their Indonesian workers the minimum wage. • In fact, all the shoe companies doing business in Indonesia would petition the government year after year for an exception from paying the minimum wage on the grounds that it would be a "hardship" for the factories to pay it. • And this was a wage that, according to the Indonesian government itself, covered only 70% of the basic needs of one person.
Marketing strategy • Nike's Marketing strategy is an important component of the company's success. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan "Just do it". • Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. However, Nike's marketing mix contains many elements besides promotion. • NIKE doesn't stand for anything. In Greek mythology, Nike was the Greek god of speed. That's NIKE's motto.
MY RESEARCH STEPS BY STEPS • Google.com • http://www.nike.com/nikeos/p/nike/en_US/ - Tried getting some info in their website, but it really didn’t have much about what I was looking for. • http://www.google.com/#hl=en&expIds=17259,23756,24692,24878,24879,24999,26767,27400,27552,27640,27651,27659&sugexp=ldymls&xhr=t&q=Nike&cp=2&pf=p&sclient=psy&site=&source=hp&aq=0&aqi=&aql=&oq=Ni&gs_rfai=&pbx=1&fp=a2739d2276f2dcad • http://en.wikipedia.org/wiki/Nike,_Inc.Got most of my information here • http://wiki.answers.com/Q/What_does_NIKE_stand_for
