Sneaker War

Nike Nike currently enjoys a 47% market sh atomic number 18 of the interior(prenominal) footwear industry, with sales of $3.77 billion. Nike has been manufacturing throughout the Asian region for over twenty-five years, and there atomic number 18 over 500,000 people today straightaway engaged in the production of their products. They go for an outsourcing strategy, using solitary(prenominal) subcontractors throughout the globe. Their majority of their output today is produced in factories in China, Indonesia, and Vietnam, but they also make believe factories in Italy, the Philippines, Taiwan, and South Korea. These factories are 100% owned by subcontractors, with the majority of their output consisting whole of Nike products. However, Nike does employ teams of four expatriates per each of the big three countries (China, Indonesia, Vietnam), that cerebrate on both quality of product and quality of on the job(p) conditions, visiting the factories weekly. They also developed their code of conduct in 1992 and pass water implemented it across the globe, as its goal is to touch on the standard for subcontractors to follow if they wish to do business with Nike. However, collectable to a manufacturing network of this magnitude, they have faced numerous violations involving manufacturing plant conditions and human rights issues, which have been widely publicized.

They have responded to these issues through the Andrew new-fashioned report, the Dartmouth Study, and Ernst & Youngs continual monitoring, but are still roughly two years away from completely addressing these problems throughout the globe. Reebok Reebok, as the second leading manufacturer of footwear, has domestic revenues of $1.28 billion and a market share of 16%. Similar to Nike, they also utilize a 100% outsourcing strategy and manufacture their products throughout Asia. They have created and implemented their own code of conduct for manufactures to follow, but have less infrastructure than Nike across the globe to enforce it. They are facing scrutiny in regards to wage, overtime, and air quality issues,... If you compulsion to get a full essay, order it on our website: Orderessay

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