Abstract
Nike, a latecomer to athletic footwear industry, has contracted its footwear production out to manufacturers in developing countries who use cheap, qualified, and plentiful labor in developing countries. At first, Nike produced its footwear in Japan. In the mid-1970s, Nike transferred its production base to Korea and Taiwan. And from the late 1980s up to now, Nike has produced its footwear in Indonesia, China, and Vietnam. Based on this outsourcing, Nike has made the great revenue, and has invested a significant portion of its profit in research and development and design of footwear, technical innovation, advertisement, and marketing. In so doing, Nike released Cortez, Waffle-sole running shoes, Air Max 1(air-bag sole), Air Force 1, and Air Jordan. Nike has also paid great money to sports stars: Steve Prefontaine, Charles Barkley, and last but not least, Michael Jordan. And Nike has produced advertisements to attract consumers. It is how Nike has overcome adidas, the longest leader in the footwear industry.
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