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In the late 1990's, Nike began to see the results of many unresolved issues concerning competitive forces exterior to the company and a value chain, unrepresentative of its marketplace and enormous growth, interior to the company. Both issues affected its bottom line negatively. One significant issue was simply a function of poor inventory management and demand forecasting, coupled with the ongoing and dramatic slump in Asian sales. Nike had anticipated a doubling of Asian revenues, but saw instead a decline (Karpinski 1). Nike also had recurring problems managing the flow of goods from manufacturers to retailers...
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