INT220 Nike Case Study Global Supply Chain Module 6 Assignment Global
Dimensions in BUSINESS Southern New Hampshire University
Nike Case Study: Global Supply Chain
Southern New Hampshire University
INT 220: Global Dimensions in
Business
June 12, 2025
, Nike Case Study: Global Supply Chain 2
Large corporations are placing growing emphasis on how and where they source
materials and labor, not only to maintain comparable quality within the U.S., but also to reduce
production costs. Nike, a leading force in the global apparel and footwear industry, has long
relied on multi-source strategies, engaging a wide network of international suppliers. However,
this approach has drawn sustained scrutiny. The company has faced widespread criticism over
labor practices in countries such as Indonesia, China, Vietnam, India, Cambodia and Thailand,
with allegations ranging from inadequate wages and extreme working hours to the exploitation
of child and forced labor, raising serious questions about whether the brand is truly walking the
talk when it comes to ethical sourcing.
Nike’s playbook when it comes to its supply chain, despite the backing of significant
financial resources, is not without its vulnerabilities. Natural disasters like typhoons,
earthquakes, and tsunamis, common in key manufacturing hubs such as Thailand and Vietnam,
pose serious threats to production continuity. Maintaining consistent quality across a wide
network of suppliers remains a challenge (Dunung, 2024). Initial set-up costs in new regions can
also be substantial, creating financial strain early on. On the upside, Nike benefits from location
advantages, including access to lower raw materials and skilled labor costs, which lead to Nike’s
9.43% profit margin as of 2025 (Macrotrends, n.d.) and more efficient production cycles.
In response to widespread criticism over labor and human rights violations, including
reports of exhausting work hours, meager wages, harsh working conditions, and instances of
child labor (Bongdap, 2024), Nike has publicly pledged to reform its practices through a
renewed focus on corporate social responsibility. The company’s Corporate Social
Responsibility (CSR) efforts emphasize the protection of human rights and ethical labor
practices across its global supply chain. The company aligns its approach with international
frameworks, such as the
Dimensions in BUSINESS Southern New Hampshire University
Nike Case Study: Global Supply Chain
Southern New Hampshire University
INT 220: Global Dimensions in
Business
June 12, 2025
, Nike Case Study: Global Supply Chain 2
Large corporations are placing growing emphasis on how and where they source
materials and labor, not only to maintain comparable quality within the U.S., but also to reduce
production costs. Nike, a leading force in the global apparel and footwear industry, has long
relied on multi-source strategies, engaging a wide network of international suppliers. However,
this approach has drawn sustained scrutiny. The company has faced widespread criticism over
labor practices in countries such as Indonesia, China, Vietnam, India, Cambodia and Thailand,
with allegations ranging from inadequate wages and extreme working hours to the exploitation
of child and forced labor, raising serious questions about whether the brand is truly walking the
talk when it comes to ethical sourcing.
Nike’s playbook when it comes to its supply chain, despite the backing of significant
financial resources, is not without its vulnerabilities. Natural disasters like typhoons,
earthquakes, and tsunamis, common in key manufacturing hubs such as Thailand and Vietnam,
pose serious threats to production continuity. Maintaining consistent quality across a wide
network of suppliers remains a challenge (Dunung, 2024). Initial set-up costs in new regions can
also be substantial, creating financial strain early on. On the upside, Nike benefits from location
advantages, including access to lower raw materials and skilled labor costs, which lead to Nike’s
9.43% profit margin as of 2025 (Macrotrends, n.d.) and more efficient production cycles.
In response to widespread criticism over labor and human rights violations, including
reports of exhausting work hours, meager wages, harsh working conditions, and instances of
child labor (Bongdap, 2024), Nike has publicly pledged to reform its practices through a
renewed focus on corporate social responsibility. The company’s Corporate Social
Responsibility (CSR) efforts emphasize the protection of human rights and ethical labor
practices across its global supply chain. The company aligns its approach with international
frameworks, such as the
