The fourth expansion strategy of Nike Inc. was product diversification. While it is essential to emphasize that the outsourcing strategy was enormously effective, it is also important to know that Nike Inc. did not rely on footwear production and importation alone, rather the company diversified into producing and selling apparel. According to the company’s financial report, revenue from the sales of apparel was estimated at 29% while footwear was 59% respectively (Locke, 2002). This diversification, no doubt, combines with outsourcing its factories to lower-cost countries and selling its products at an affordable price was the catalyst to Nike Inc. expansion strategy. Explain what the positive and negative impacts of this strategy were. Whatever that has a positive would likewise have a negative. The …show more content…
Yes! Nike first response of ignoring and deflecting these criticisms, coupled with the self-defense was apparently a lack of concern for human lives. Nike would have responded differently by first accepting the responsibilities of what transpired in these factories. The fact that employees working in these factories were not directly employed by Nike was not a yardstick to exonerate itself from atrocities that took place under its watch in these countries. In my perspective, the second response, instead of the initial lackluster defense the company came up with, a code of conduct should have been immediately put in place to correct the anomalies and publicly apologize for what was going on. The company should have immediately embarked on a training mission to educate both contractors and employees on what is acceptable and what is unacceptable in any factory connected with Nike. This training mission should have been the third response of the company. Although the company applied the above suggestions, but it was rather too late while some significant damages were already inflicted on the company’s