Nike’s strategy for outsourcing

I remember hanging out with friends and getting into conversations about Nike Jordan shoes for hours. I’ve worn Nike shoes since I was a teenager. Nike Air Force One was the shoe that kids had to wear to be “cool” at my high school. I’ve always been a fan of all Nike shoes from the classic casual shoes to the running shoes. As a long standing customer, I’ve never been displeased with Nike products. The company’s products are of great quality. I own basketball shoes that are five years old. I’ve worn the shoes on a weekly basis and seems like they could last at least one more year. The shoes last a very long time and are comfortable while playing sports or simply to walk. Going to a Nike store even today is a great experience. The Nike retailers seem to be on point with the demand of the customers and up to date with current trends. Nike enjoys about 47% of the market share for shoes and it’s no surprise. With over 500,000 employees currently working across the globe, Nike has managed to deliver its code of conduct and make production standard. The company utilizes a strategy of outsourcing and visits its 800 factories on a weekly basis. This means Nike is committed to keep its brand uniform even if its operation runs worldwide.

Operations for Nike collaborate and transport from South Korea, Italy, Philippines, and China for over twenty five years now. Its ability to produce a product that is manufactured in different parts of the world, speaks highly of the company. Nike is in constant competition with Reebok and Adidas. Fox (2015) states that, “The company believes that competitive pressure will help it achieve improvement across its global supply chain.” Nike embraces the competition and aims to provide quality, cost efficient products and on-time delivery to its customers. This is something that is reflected all the way to the company’s retailers and customers. Nike customers like myself will stay loyal to a company like this one for many years.

References:

Sustainability Business (2015). Nike moves faster to clean up its supply chain. Green Biz. Retrieved from http://www.greenbiz.com/news/2013/03/25/nike-moves-faster-clean-its-supply-chain

Fox, N. (2015). Nike: How supply chain measures up. The guardian. Retrieved from http://www.theguardian.com/sustainable-business/nike-supply-chain-measures-up

Van Dusen, S. (1998). The manufacturing practices of the footwear industry: Nike vs. The competition. UNC. Retrieved from http://www.unc.edu/~andrewsr/ints092/vandu.html