Nike's strategy of shaving costs caused ethical dilemmas that ultimately damaged its reputation. Nike outsources all of its manufacturing. This approach has provided Nike with huge profits, "from a 1972 level of $60,000 to a startling $49 million in just ten years" (Bartlett, Ghosal, & Birinshaw, 2004). "Production is now globalised, with different countries concentrating on different parts of the process depending on what they are good at, or what they can do most efficiently or cheaply. …
