It Wasn’t Like This Before

A long time ago, there were two dominant sports shoe companies, Adidas and Puma. These companies were both German and both producing high quality products. Then a guy by the name of Phil Knight decided to start his own shoe company, everything changed.

Being a varsity runner himself at the University of Oregon, Knight knew quite a lot about shoes. His entrepreneurial bent did not begin in college. After a stint in the Army, he went to graduate school at Stanford University.  It was there where he got his desire to start his own business and naturally it had to deal with shoes.

A trip to Japan exposed him to a brand of shoes that were just as good in quality as the German shoes but made at a much lower cost. He was able to make a deal with the shoe company (Onitsuka the makers of Tiger shoes) and began selling these shoes in 1964 on the side while maintaining his day job.

In 1971 he finally decided to quit his job and strike out on his own.  Choosing the name Nike actually came from a friend, and someone was paid to design the now so famous “swoosh” logo.  In part due to the jogging boom Nike made great sales. Phil Knight’s company was also good in advertising. In one event it advertised that 4 of the top 7 finishers were wearing Nike shoes; not mentioning that the top 3 finishers were wearing Adidas.

Phil Knight’s formula of star athletes endorsing Nike was a resounding success. Michael Jordan in the 80’s boosted the company image and just as important helped increase sales. Michael Jordon also earned millions from Nike. So many athletes now have multi-million dollar endorsement contracts with Nike.

Nike was unheard of in golf until it signed up the then upcoming Tiger Woods.  Nike is now everywhere in the sports world, from the world’s most popular sports football to America football.  Maria Sharapova, Rafael Nadal, Lebron James, just a few of the sports celebrities with multi-million endorsement contracts with Nike.

Nike is not just into sport shoes, but sports equipment and apparel, and has other fashion brands not directly related to sports.  While Adidas and Puma are still there, Nike is on top of the hill. Out of nowhere Phil Knight forever changed the sports apparel market and has even influenced the sports industry itself.