| "Play by the rules. But be ferocious." | | | | werehighlighted. Steve Prefontaine, a brash and |
| Starting The Business | | | | unconventional American record-holder, became the |
| Like Fred Smith and the origins of FedEx, Philip Knight's | | | | first spokesperson for Nike shoes. |
| first ideas of what would become Nike Inc. came to | | | | After the tennis player John McEnroe hurt his ankle, he |
| him while he was atschool. While working on his | | | | began wearing a Nike three-quarter-top shoe, and |
| master's at Stanford, Knight - an accomplished runner | | | | sales of that particularbrand jumped from 10,000 pairs |
| during his undergraduate days at the Universityof | | | | to over 1 million. As Knight had hoped, celebrity athlete's |
| Oregon - wrote an essay that outlined a plan to | | | | endorsements brought success to thecompany. Knight |
| overcome the monopoly Adidas had on the running | | | | also capitalized on a jogging craze, and through clever |
| shoe market. He thought the wayto realize this was to | | | | marketing persuaded the consumer that they should |
| employ cheap Japanese labour to make a shoe both | | | | only bewearing the best the best in the world. |
| better and cheaper. | | | | The Air Jordans helped the company continue to thrive |
| The plan was put into action shortly after graduating in | | | | into the 1980s. In their first year, the shoe made more |
| 1962. Knight went to Japan to meet with the | | | | than $100 million. |
| executives of Onitsuka Tiger | | | | Knight realized his initial goal of replacing Adidas as the |
| Co., a manufacturer of imitation Adidas runners, | | | | number the one shoe manufacturer globally in 1986. By |
| claiming to be the head of a company called Blue | | | | then, total saleshad surpassed $1 billion. However, by |
| Ribbon Sports (which did notexist, except in his mind). | | | | neglecting the growing interest in aerobics shoes, Nike |
| Knight convinced Tiger to export their shoes to the | | | | would have to face a fewdifficulties. |
| States though Blue Ribbon and had them send | | | | Through Problems and Controversy |
| samplesso his associates could inspect them. | | | | Sales dropped 18% between 1986 and 1987 as |
| Knight paid for the samples with money from his | | | | Reebok's trendy, stylish aerobics shoes came to be in |
| father. He sent a few pairs to Bill Bowerman, Knight's | | | | high demand. Knight had toacknowledge that the |
| track coach from his days atthe University of Oregon, | | | | technical achievements of the Nike shoe would not |
| who became interested in the venture. Knight and | | | | satisfy those who placed appearance above |
| Bowerman became partners and put $500 each into | | | | performance. The |
| thepurchase of 200 pairs of Tigers. Blue Ribbon | | | | Nike Air was Knight's response to Reebok. It revived |
| Sports was formed, and Knight began going to high | | | | sales and put Nike back in the number one spot in |
| school track and field eventsselling the shoes from the | | | | 1990. |
| trunk of his car. | | | | Corporate Monster that it had become, Nike was the |
| Sales were at $3 million dollars when Knight chose to | | | | object of public outrage in 1990 when stories of |
| dissolve the partnership with Tiger in the early 1970s. | | | | teenagers killed for their |
| Blue Ribbon beganproducing its own line and began | | | | Nikes began floating around. It was believed that Nike |
| selling its Nike line (named after the Greek goddess of | | | | was promoting their shoes too forcefully. |
| victory) in 1972. These first Nike shoeswere adorned | | | | That same year Jesse Jackson attacked Nike for not |
| with the now-internationally recognizable swoosh logo - | | | | having any African-Americans on its board or among |
| which Knight had commissioned for $35 - and had | | | | its vice-presidents, despitethe fact that its customer |
| thetraction-improving "waffle soles", conceived of by | | | | base was in large part black. Jackson's Nike boycott |
| Bowerman while watching his wife using a waffle iron. | | | | lasted until a black board member was appointed. |
| Building An Empire | | | | There has also been a controversy around whether |
| Blue Ribbon's success (renamed Nike in 1978) | | | | Knight's use of Asian factory workers as cheap labour |
| throughout the 1970s and into the '80s can largely be | | | | s exploitative. |
| attributed to Knight's marketingstrategy. He thought it | | | | Through all of the bad press that has been foisted on |
| best not to push his Nike shoes though advertising, but | | | | Nike through these events, Nike shoes have continued |
| rather to let expert athletes endorse his product. | | | | to sell well. And in |
| Fortune smiled on Knight as his partner Bill Bowerman | | | | 1993, The Sporting News voted Knight "the most |
| became the coach of the American Olympic team | | | | powerful man in sports" though he was neither a |
| and many of the best performerson the team decided | | | | player nor a manager. Knight'smarketing mastery is to |
| to shod their feet with Nikes. Of course, when the | | | | be lauded and regarded as a major factor in his |
| runners performed well, the shoes they wore | | | | impressive successes. |
