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How did this happen? I believe that the loss was due to a serious image problem that Nike had developed over the previous decade that revolved around child labor practices, low wages, and employee safety in overseas manufacturing facilities.
Nike outsourced their manufacturing to countries like China and Indonesia to shave costs and in turn spent that saved money on marketing. All products were made by independent contracting factories resulting in a manufacturing firm with no physical assets. This allowed Nike to manufacture their products in overseas facilities at very low cost when compared to U...
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