"Play by the rules. But be ferocious."
Starting The Business
Best Mixers
Like Fred Smith and the origins of FedEx, Philip Knight's first ideas of what would come to be Nike Inc. Came to him while he was at
school. While working on his master's at Stanford, Knight - an concluded runner while his undergraduate days at the University
of Oregon - wrote an essay that outlined a plan to overcome the monopoly Adidas had on the running shoe market. He concept the way
to realize this was to hire cheap Japanese labour to make a shoe both best and cheaper.
The plan was put into activity shortly after graduating in 1962. Knight went to Japan to meet with the executives of Onitsuka Tiger
Co., a maker of imitation Adidas runners, claiming to be the head of a firm called Blue Ribbon Sports (which did not
exist, except in his mind). Knight convinced Tiger to export their shoes to the States though Blue Ribbon and had them send samples
so his company could seek them.
Knight paid for the samples with money from his father. He sent a few pairs to Bill Bowerman, Knight's track coach from his days at
the University of Oregon, who became curious in the venture. Knight and Bowerman became partners and put 0 each into the
purchase of 200 pairs of Tigers. Blue Ribbon Sports was formed, and Knight began going to high school track and field events
selling the shoes from the trunk of his car.
Sales were at million dollars when Knight chose to dissolve the partnership with Tiger in the early 1970s. Blue Ribbon began
producing its own line and began selling its Nike line (named after the Greek goddess of victory) in 1972. These first Nike shoes
were adorned with the now-internationally recognizable swoosh logo - which Knight had commissioned for - and had the
traction-improving "waffle soles", conceived of by Bowerman while watching his wife using a waffle iron.
Building An Empire
Blue Ribbon's success (renamed Nike in 1978) throughout the 1970s and into the '80s can largely be attributed to Knight's marketing
strategy. He concept it best not to push his Nike shoes though advertising, but rather to let scholar athletes endorse his product.
Fortune smiled on Knight as his partner Bill Bowerman became the coach of the American Olympic team and many of the best performers
on the team decided to shod their feet with Nikes. Of course, when the runners performed well, the shoes they wore were
highlighted. Steve Prefontaine, a brash and unconventional American record-holder, became the first spokesperson for Nike shoes.
After the tennis player John McEnroe hurt his ankle, he began wearing a Nike three-quarter-top shoe, and sales of that singular
brand jumped from 10,000 pairs to over 1 million. As Knight had hoped, celebrity athlete's endorsements brought success to the
company. Knight also capitalized on a jogging craze, and through clever marketing persuaded the buyer that they should only be
wearing the best the best in the world.
The Air Jordans helped the firm continue to thrive into the 1980s. In their first year, the shoe made more than 0 million.
Knight realized his introductory goal of replacing Adidas as the whole the one shoe maker globally in 1986. By then, total sales
had surpassed billion. However, by neglecting the growing interest in aerobics shoes, Nike would have to face a few
difficulties.
Through Problems and Controversy
Sales dropped 18% between 1986 and 1987 as Reebok's trendy, stylish aerobics shoes came to be in high demand. Knight had to
acknowledge that the technical achievements of the Nike shoe would not satisfy those who placed appearance above performance. The
Nike Air was Knight's response to Reebok. It revived sales and put Nike back in the whole one spot in 1990.
Corporate Monster that it had become, Nike was the object of collective outrage in 1990 when stories of teenagers killed for their
Nikes began floating around. It was believed that Nike was promoting their shoes too forcefully.
That same year Jesse Jackson attacked Nike for not having any African-Americans on its board or among its vice-presidents, despite
the fact that its buyer base was in large part black. Jackson's Nike boycott lasted until a black board member was appointed.
There has also been a controversy around either Knight's use of Asian factory workers as cheap labour s exploitative.
Through all of the bad press that has been foisted on Nike through these events, Nike shoes have continued to sell well. And in
1993, The Sporting News voted Knight "the most qualified man in sports" though he was neither a player nor a manager. Knight's
marketing mastery is to be lauded and regarded as a major factor in his impressive successes.
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