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Nike’s control over and awareness of the factory conditions decreased with each successive production level outsourced to subcontractors. This lack of awareness was poignantly reversed in June of 1996, however, when the conditions of Nike’s factories became a nationwide media topic.
Nike is characterized of making its equipments in countries which are in the developing phase, having very cheap labor, authoritarian government and lack of human rights appeal and union movement...
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In doing this it has made greater margins on the cost of mere cents to its workers. So Nike success story is not just based on good name and advertising alone but also attached to it is the tears of workers and child labor. As a good business strategy, Nike always thinks ahead of its movement. It does not launch its production directly in to the developing country, such as Vietnam, Indonesia, Korea, Pakistan or Vietnam, but instead it subcontracts it to them by selecting a local firm...
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