NikeExpertCompanyPaper
NikestartedoutasasmallbusinessinOregonfoundedas“BlueRibbonSports”
byBillBowermanandPhilKnight.Originallythecompanyfocusedondistributing
runningshoesmadeinJapan.SaleswereinitiallymadeoutofthetrunkofPhilKnight’s
carattrackmeetsandathleticevents.Eventuallythecompanyshiftedawayfromshoes
madebytheirJapanesesupplieranddecidedtocreatetheirowndesigns.Bowerman
experimentedwithdifferentdesignsandeventuallysettledontheiconicrubbersoled
“waffleiron”shoe.BycreatingcustomshoesNikewasabletonotonlyreduceinjuries
butalsocreatelightershoesforrunning.Astheculturehealthandfitnessemergedin
AmericaBlueRibbonSportsbusinessboomed.
In1972theNike“Swoosh”Logowasfirstpresentonarunningshoe.Todayitis
oneoftherecognizablesymbolsintheworld,alongsidethegoldenarchesof
McDonaldsandthecrossofChristianity.WhileNikemayhavestartedfromsalesoutof
thetrunkofacar,itisnowthelargestsportsfootwearandapparelcompanyinthe
world.Asthelargestsportscompanyintheworldtheyhadrevenuesof$27.8billionthis
year(2014).SincethestartofthisreportinSeptember2014Nikestockhasrisenfrom
$78.50to$98.50.
Nikedifferedfromothersportscompaniesevenfromanearlystart.PhilKnight
wasafirmbelieverinexportinglabortoothercountriestocutdownonlaborcosts.By
doingthisNikesaved,andstillsaves,tremendousamountsofmoneythroughoutthe
manufacturingprocess.TodayNikeexportsitslabortomanydifferentindependent
contractorsinAsia.Outsourcinglabortocountrieswithcheapercostscanbeavery
lucrativebusinesshoweverthishasleadtoseveralcontroversiesovertheworking
conditionsofworkersinthesecontractor“sweatshops”.
Nikehasalsobeenverygoodatbrandingtheircompanynameandlogo.The
“swoosh”issowidelyrecognizedthatNikehasdroppedtheuseofword“Nike”onmany
productsandinsteadhasreliedsolelyontheswooshtorepresenttheirbrand.The
droppingoftheirnamefromproductsiscalleddebrandingandhasbeenadoptedby
otherlargecompaniestocreateacloserrelationshipwiththeconsumerratherthan
appearasaloomingcorporateentity.Havingsuchastrongbrandandrecognizable
logoisahugebenefitasitallowsNiketochargemuchhigherpricesforproductsthat
arethesamequalityoflesserknowncompaniesorproducers.