NIKE IS FACING A NEW WAVE OF ANTI-SWEATSHOP PROTESTS: Case Study
Introduction
Nike is an American multinational company originated by Bill Bowerman in 1964Nike has one of the main brand images all over the planet. In 1990, it has been blamed for utilizing sweatshops and labor maltreatment to deliver footwear and clothing in East Asia. After the 1990s, the pressure grew towards Nike which had made the company change its policies and implement “The fair Labor Association (FLA)” at the beginning of 1999. But after a year, Nike “sweatshops” problem has again given a comeback. Different activities and students have started the protest against Nike organized by “United Students against Sweatshops (USAS)”
Nike anti-sweatshop campaign
The Nike Anti-Sweatshop crusade is one part of a bigger worldwide development pointed toward bringing issues to light about work conditions in assembling zones of agricultural countries where major worldwide companies progressively contract for the production of their items
Problem statement
The issue explanation that emerges is that the subcontracted laborers of Nike are working beneath U.S. working condition principles. It has denied the "Worker Rights Consortium (WRC)" admittance to review its agreement processing plants which become a difficult issue for Nike.
Internal factors- Swot Analysis
The swot analysis is a helpful vital apparatus used to dissect the organization's inner design like qualities and shortcomings, to reproduce that shortcoming into potential open doors, by limiting the dangers and support future development. The components of swot analysis are given below: (See appendix 1)
Strengths
Nike has immense brand loyalty and market share that has made the company worthy in the market. Moreover, the quality of the product is what speaks the Nike mission and strategic vision. Its strong market bond and financial condition have made it quite restrictive and innovative to its customer globally.
Weaknesses
When it comes to weaknesses, one of the major weaknesses that came forward was its anti-sweat-shop protest. Nike's lack of ethical dilemmas and weak cultural roots has made the company less competitive in the market. Its Anti-Sweatshop crusade is one part of a bigger worldwide development pointed toward bringing issues to light about work conditions in assembling zones of agricultural countries where major worldwide companies progressively contract for the production of their items. Moreover, another major weakness associated with Nike is its product outsourcing.
Opportunities
Nike can turn their weaknesses into opportunities by imposing proper ethical dilemmas and resolving the protest issues. The company can open up its stores in different small cities to generate economies. Moreover, the company buy-out subcontractors and generate innovative products.
Threats
The potential strike of representatives and boycotts has been one of the major threats to Nike. The fake imitations of Nike have led them to the extreme downfall and immense competition. It is important for the company to strictly impose ethical and legal guidelines to generate future revenues.
External factors-PESTLE Analysis
Appendix 2 shows the Nike PESTLE analysis, which helps the company to examine its external factors and revive them.
How Nike Solved Its Sweatshop Problem?
- Nike sweatshop problems started at the beginning of 1990 which let the people protest against them
- At the beginning of 1999, Nike reversed the table and started creating the “fair labor association (FLA)”
- FLA is a non-profit organization that joins organizations, and basic liberties and work delegates to layout autonomous observing and a governing set of rules.
- The company continues to perform its duty and morals as a part of “Corporate social responsibility”
- After the long strategic implementation, Nike is again facing the wave of sweatshop protests
- It can be further looked up by lowering the endorsement offers, altering the business model, and implementing the ethical guidelines strictly.
Conclusion
The Nike Anti-Sweatshop crusade is one part of a bigger worldwide development pointed toward bringing issues to light about work conditions in assembling zones of agricultural countries. After a lot of debate and protests against the labor issues, Nike started to begin the set of representatives and FLA. It can be further looked up by lowering the endorsement offers, altering the business model, and implementing the ethical guidelines strictly......
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