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Summary: Nike Impacts (How is Nike changing, and what are its goals for…

- - - - Nike products are high quality; customers are happy since they can satisfy their demand for good shoes for sports.
      - Nike has various non-profit organizations that help those in need (young girls, aboriginals, etc.) to play sports, such as Nike+, Nike N7, Made to Play. etc.
      - Nike gets more than 16 million children more active.
      - Normal people are inspired to become athletes.
    - - 1 Nike factory employs around 500 people.
      - Nike employs 76,700 people worldwide.
      - Allows the people to support their families and contribute to the development of the society.
      - Famous athletes can sign contracts with Nike to boost their career and earn significantly more. E.g. Michael Jordan with more than 500,000USD annually, and Lebron James with 1 billion deal.
    - - Nike entering the market provides strong competition other successful companies such as Adidas and Puma.
      - Customers have more products to choose from.
      - Prices are moderated with competition.
      - Innovation and improvement of products means that customers benefit from better products and perhaps better performance.
  - - - Nike chooses to build factories in developing countries for their cheap labour in order to maximize profits.
      - Workers have to work significantly more since their wages are low, in bad conditions. E.g. Indian workers normally more than 10 hours everyday, with only 11 rupees (0.3USD) per hour.
      - 72% of Nike's total work force is in developing countries in Asia, especially Thailand, Indonesia, Vietnam, China, and India.
      - Has been accused of using sweatshops and child labour, ever since the 1970s; though there is no hard evidence.
      - Cambodian workers suffered mass fainting because of heat.
      - Little transparency of worker wages in developing areas.
    - - Sales rates for other sportswear companies such as Adidas, Puma, Under Armour, etc. all drop.
      - Local stores may go out of business because Nike's fame attracts lots of customers and thus dominates the market.
      - People who work in local stores may in turn lose jobs and cease to contribute to the growth of the society.
      - Some customers may also mourn the loss of businesses that sell cheaper products, as they may not afford Nike's high prices of an average 90USD to 110USD.
    - - 15-hour working days (many work over-hours to survive since their wages are not enough), 6-7 days a week.
      - Crowd into slums with over 37˚C and 100% humidity.
      - 200,000 workers who are paid the minimum wage of 95.50USD per month said they need at least 310USD to meet their needs.
      - Parents overwork → children receive no childcare and no school → no education → no economic/social development
      - Workers are paid 1.25USD per day - not enough for any sort of medication unless they cut money from food and water.
      - Pollution from the process of production, e.g. burning waste rubber, make the locals sick with infections and even cancer.
    - - Some Nike factories work with local mafia to keep workers in line.
      - Worker named Julianto tried to start a worker union and was threatened at gunpoint, then his house was ransacked.
      - Selected workers are illegally arrested and tortured so other workers would be frightened and obey instructions.
- - - - 1152 retail stores in 46 different countries.
      - Over 780 pairs of shoes are sold annually.
      - Net worth 32.6 billion USD in 2019.
      - Around 4.03 billion net income annually.
      - Revenue increased from 11.5 billion USD in 2010 to 22.2 billion in 2020, which means in 10 years Nike's revenue almost doubled.
    - - India +33%.
      - Thailand +25%.
      - Malaysia +21%.
      - Vietnam +8%.
      - Worker wages are raised in less developed countries.
    - - Nike spurs fellow competitors to create higher quality and innovative products to stay in the sportswear market, which encourages customers to buy more new products, improving the industry's overall development.
      - Nike, through its extraction and production of resources, needs both natural and human resources, which creates jobs and stimulates the economy by lowering unemployment rates.
      - Nearly 40 billion USD worth of Nike shoes alone are consumed. This huge consumption of Nike products stimulates economic development because these expenses can then be used in other areas, stimulating economic growth in various other industries.
  - - - Before Nike, Adidas was the biggest sportswear company. However, in 1980, Adidas was overtaken by Nike.
      - Adidas can no longer earn as much revenue as Nike is strong competition and controls a large portions of loyal customers.
      - Rival multinationals such as Adidas, Puma, Under Armour, etc. suffer economic development because of Nike.
    - - Nike's fame pressures local businesses that sell similar products.
      - Though the difference between prices is relatively broad, Nike's fame draws customers away from local stores.
      - People may lose jobs due to how local businesses are suffering.