2. What are the potential costs related to Nike’s basketball shoe blowout incident?
Requirements: 300
Answer preview
Considering the losses mentioned above and the injury case, Nike is subjected to legal costs due to the potential legal complaints from the star basketball player and sponsoring team. Additionally, the company has to address settlement costs, entailing the victim’s legal expenses, which accumulate during the hearing period of the case (Ibidapo, 2022). Further costs are associated with product recalls and return to prevent additional client damage. Considering the shoe blowout was a quality issue, Nike has to cater to expenses for product failure investigation and redesign. Due to the negative publicity and customer attrition, costs linked to loss of sales are a burden to the company (Ibidapo, 2022). Generally, a poor-quality product impacts a brand’s
