Globalization

How it's Made

Nike Sneakers

The product I chose was a Nike Sneaker. The raw materials that are used to make a simple Nike shoe is polyester, rubber, EVA foam, cotton, leather, and synthetic leather. Here is a look into where the raw materials can be found.

India and China are the two leading countries that produce polyester; one of the main materials. 19% of the polyester that is used to make a sneaker is recycled. Nike melted plastic bottles and from that they were able to make strands of polyester. Next, Nike uses an altered rubber that is eco-friendly. 70% of Nike sneakers use the altered rubber and have done so since 2002, when it first came out. The world's leading rubber producers are Indonesia, Malaysia, and Thailand. Another material that is widely used is cotton. Nike receives organic cotton from Turkey, United States of America, China, and India. Nike's goal is to use more organic cotton in their sneakers because it is free of pesticides and fertilizer and would better the shoe.

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Globalization

Economic, cultural, environmental, and technological are the four categories of globalization. Each category has a major problem in manufacturing a Nike shoe, and here's why. In 2013, Nike was struggling economically in China; the world's largest sportswear market. Nike accused the decreasing sales on slow GDP growth and preferences changing. Another problem is the cultural block between Nike and China. Nike expected the brand to double in sales in the next four years, but sales already started to decrease in the span of five quarters. Next, is about Nike and their environmental actions. Nike uses an altered, eco-friendly rubber and carbon off-sets in their shoes. The Nike company has continued to make bigger and better actions for the environment. Lastly, is the technological problem that happened in 2001. Nike blamed the technology software; i2 technology, for their stock shortage. Nike and i2 technology worked together and discovered that Nike's schedule and order system was what had a big impact on the their stock shortage.

Solutions

Some solutions for the economic factor would be to open more stores in the China area. Buy opening more stores in different locations, Nike would probably not be in that economic situation. A solution for Nike's cultural problem would be to have more sales in China. Due to the cultural block, Nike's brand decreased in sales within five quarters. Next, a way to better the environmental factor is to continue using eco-friendly alternatives such as using less plastic and maybe even recycling. Lastly, to solve their technological problem, a solution is to have the order system and schedule at a more efficient time. The order system and schedule was what had a huge impact on Nike's stocks.

Why I chose Nike

I chose Nike sneakers as my product because the shoes are of great quality and I like the brand. Nike sneakers play a role in my life because their shoes are great for someone who is active like me. The sneakers are also very comfortable and have many styles to match people's preferences.