Nike spends more than 20 million dollars promoting Nike’s golf division to Tiger Woods, LeBron James gets paid $13 million dollars just to play basketball wearing Nike’s Basketball shoes, and in 2010 spent over $476 million dollars to endorse various athletes.
So if Nike has all this money for endorsements why is it that gets the majority of its products are made in third world countries such as Indonesia, China, and Vietnam where the average salary in Vietnam is about $37 a month in US dollars? This was a major scandal during the late 90’s and has since been fixed and they did a good job of cleaning up their image. Recently t there was a commercial that caused a good amount of controversy concerning Nike.
Tiger Woods is one of most endorsed athletes in the world and when the scandal broke out of him being unfaithful to his wife most of his sponsors dropped him. All except for Nike who made this commercial with his father’s voice stating: “Tiger, I am prone to be inquisitive, to promote discussion. I want to find out what your thinking was. I want to find out what your feelings are. Did you learn anything?”
My question is was this Nike’s attempt to save one of their star athletes, was it just Nike trying to capitalize on Wood’s misfortunate exposure, or was it just made to be talked about and consequently cause more exposure for Nike?