Basics of the Product:
Raw Materials: Leather (Supplied by South American cattle farms); Rubber (Supplied by South American rubber tree farms); Cotton (Supplied by Southern US cotton farms); Polyester
Manufactured in: Privately owned factories in China, Indonesia, and Vietnam
Distribution: All Nike products are shipped from Asian factories to the company's distribution center in Memphis, Tennessee. They are then taken all over the country to stores and outlets.
Livestock farming (cattle in particular) is one of the most prominent industries in South America. Uruguay and Brazil are the leading leather producers in the continent, so Nike turns to farms in these countries to get leather. This allows the agricultural lifestyle of these countries to continue to prosper.
Rubber Tree Farms
94% of the world's rubber comes from Southeast Asia. Nike gets their rubber from these countries, which helps the agriculture industry in this part of the world. This helps the economy as a whole improve in Asia.
Nike hires private companies in China, Vietnam, and Indonesia to make their shoes. These factories have very poor working conditions and very little pay by our standards, but these factory jobs are what keep people from unemployment and the Asian standard of living is slowly improving because of them.
Rubber Tree Farms
Nike Distribution Center
Nike's Memphis, Tennessee distribution center is the company's largest at 2.8 million square feet. Roughly 1,600 people are employed here.
This is where Nike collects and sorts all its products for US shipment. From there, the products will go all over the country to be sold.
4 Categories of Globalization
Problem: Because of Nike's impact on Asian culture, traditional aspects of Asian fashion are becoming much less common. Taking away such a significant part of Asian culture will make the countries less like Asia and more like America. This creates a lack of cultural diversity, which makes the world and its people much less interesting and unique.
Problem: Because Nike outsourced most of their jobs to Asia, very few Americans can be employed at their company. The American people do not appreciate the idea of outsourcing, and dislike Nike and many other companies for doing it.
Problem: Nike owns much of the sportswear industry. This means that if another company improves on a design, they would struggle to get out of Nike's shadow and market their product as rivaling Nike's equivalent product.
Problem: Some of the materials Nike uses to make products impact the environment. Anything polyester based is made with petroleum, which can only be harvested by drilling into the earth. This drilling can sometimes spill oil into the ocean, severely harming all plants and animals around the spill.