What is pros and cons of nike and how we explain in our own words
Answers
One advantage is that Nike is an internationally known brand and can thus sell shoes all over the world. Nike also can keep labor costs down by using laborers in the developing world—this allows the company to maintain large profits and thus keep investors happy. Athletes are as willing to partner with Nike as Nike is to partner with athletes. This enables athletes and Nike to build international brands.
While the advantages are great, the disadvantages can be just as large. Social justice groups in the United States and throughout the world point to sweatshop conditions in Nike factories in Asia. When pressed on this, Nike points out that they create jobs in the developing world and that they pay fairly well relative to other jobs in the area. Some consumers boycott Nike products so as to not to support overseas sweatshops. Tariffs and unrest overseas can also affect Nike's ability to trade or to recruit workers in a stable work environment. Shipping costs are also a factor, as the price of fuel has increased considerably. Many companies are realizing that they could potentially save money by automating their production lines and bringing the jobs back to the United States. Some companies overseas are able to sell knock-off Nike products by using the brand but marketing a product that is not up to Nike standards. This may hurt the brand in that area.
Nike, like many international businesses, has many considerations when deciding to move operations overseas. While it is important to find the lowest possible costs, the company must also target the socially conscious consumer at home as well as look at other costs such as tariffs and fuel costs.