And licenses some athletic and casual footwear under the converse, al star, suck Taylor, sar chevron, oe star as well as jack Purcell trademarks. Other owned subsidiaries like Umbro and Hurley designs and supply products using their own trade marks under the umbrella of Nike thus giving maximum profits to the company due to their diversities. Tis company designs almost all sport materials and has customers throughout the world. Tey sell their products in wholesale as well as to their retailors. Hwever, tey have a right to products directly to the consumers at the ground level without any interference.
Te subsidiaries like Umro which are full owned by this company design and sell products on behave of NIKE. Nke as one of the big companies in the world that designs develop market and supply sport products has managed to accumulate a lot of profits for a very long time. Hwever, i has also been subjected to a lot of challenges. Te world is the world of competition and each and every company has its competitor which heath in business.
Nke has many competitors that produce and sell the same products just like Nike (Hill, 2009). Teir major competitors are Adidas and Puma which produces and sell sport materials world wide. Aart from competition as one of the challenges, tere are other challenges and problems faced by this company. Tese include; lgal, cltural and ethical challenges that Nike faces in the global business. Ay big company like Nike experiences a lot of challenges when they establish anew market in a foreign country. In most cases, of main issues of concern include the child labor laws, otsourcing effects on sales and wages.
Ech country has its own cod of conduct and this has been one of the challenges that Nike has faced for example they were sued in USA because of sweatshop which was unethical in the country. Tis company has also been termed globally that it is exhaustive and that it subjects their workers in a poor working conditions paying them very low wedges (Hill, 2009). Te global protesters of human rights criticized for taking of the workers and putting them in a very poor working environment.
Mreover, oher ethical issues arose when research indicated that the workers who had some breathing and respiratory problems were not transferred to other better departments. Tere were other claims that the workers who worked in departments that dealt with dangerous chemicals. ..
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