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Case Of Nike

Question 1
The Case of Nike (Benefits of Globalization)
1960s lower cost , high quaility Japanese producers were begining to take over the USA shoe market. With this rising competition Nike’s business model developer Knight believes by outsourcing shoe production to lower cost japanese producers could undersell its competitors.As a result they outsource their shoes from japanese producers .This business model gave them strenght so they began to make their own design. And with the nixon shock they began to seach for alternatives. Nike opened up its own shoe factories in Maine and New Hampshire and they found suppliers in Korea, Thailand,China and Taiwan. With this policies Nike just search for low cost but for this countrys they create economic growth. With developing its suppliers Nike also develope this countrys economy.For example suppliers of Nike had a big customer which would always need raw material .So this customer give them power. But such a market always create competitiors. And rising competion in supplier create higher salaries for their workers.So this competion just in suppliers can create a economic growth. But for Nike’s model this economic growth create higher costs and Nike re-locate its operation to lower-cost countries.

Today Nikes products are manufactured in more than 700 factories ,employing over 500.000 workers in 51 countries. Most of Nikes factories and suppliers are located in in Asia because of its low cost.For working with this suppliers Nike monitor on a regular basis the production process and working condition. With this they create new enviroment for all the companies in this countries. They learned new ways for effective an efficient production. And with the rising competition workers get more money. So welfare off society rises up. These small economies get more capital outside of their countries. And with enough sources (land, capital, workforce) entrepreneurs can easily develop their own companies. These small...