What started with a handshake between two running geeks in Oregon in January 1964 are
now the worlds most competitive sports and Fitness Company. Bill Bowerman the
legendary University of Oregon track &field coach and Phil Knights a University of
Oregon runner under Bowerman coach, found the Nike Company, named by the Greek
winged goddess of victory. First the company was named Blue Ribbon Sports. The Nike
athletic machine began as a small distributing outfit located in the trunk of Phil Knights
car. From these rather unpromising beginnings, Knights idea grew to become the shoe and
athletic company that would come to define many aspects of popular culture. Bill
Bowermans search for lighter, more durable racing shoes for his Oregon runners, and
Knights search for a way to make a living without having to give up his love of athletics.
Bowermans desire for better quality running shoes clearly influenced Knight in his search
for a marketing strategy. Between them, the seed of the most influential sporting company
grew. While getting his MBA at Stanford in the early 60s, Knights the semester-long
project was to devise a small business, including a marketing plan. Synthesizing
Bowermans attention to quality running shoes and the burgeoning opinion that
high-quality/low cost products could be produced in Japan and shipped to the U.S. for
distribution, Knight found his market position.
By 1964, the company had sold $8,000 worth. Bowerman and Knight worked together, but
ended up hiring a full-time salesman, Jeff Johnson. After cresting $1 million in sales and
riding the wave of the success, Knight devised the Nike name and trademark Swoosh in
1971. By the late 70s, Blue Ribbon Sports officially became Nike and went from $10
million to 15 billion in sales in 2006.
Growth of the companys over time
Due to the industrys strong global presence, in the political and legal changes are many
legal restraints that must be taken into consideration. There are positive aspects such as
those provided by NAFTA and GATT such as, reduced import/export duties when
operating in Mexico and Canada, and access to international markets and tariff cutbacks as
provided by GATT. However with the new formation of the European Union and the
introduction of the Euro, has increased European influence on import controls, but it has
also created one European market. In 1995 the EU (European Union) enforced on
imported athletic footwear from China and Indonesia anti-dumping duties. The U.S.s
diplomatic relations with countries such as China and Vietnam is critical for shoe
manufacturers who want to produce in those countries. In addition to these changes, there
are also laws that vary from country to country which may provide opportunities or impose
restrictions.
The most influential cultural change would be how to approach the changing youth
markets who are mostly interested in boots, and sandals. Even though the consumers in the
footwear industry have become more brand conscious; that does not mean that they are
buying more athletic shoes. The industry was experiencing a decrease in health and fitness
awareness and practices, but I believe the onset of the twenty first century has brought it
back to wear it use to be in the early 90s. The industry is realizing the influx of womens
sport players and leisure fitness participants, and is preparing to accommodate such an
increase in female consumers. Also as women increase their consumption the younger
generation is decreasing; due to the popularity of boots and sandals. Additionally because
of the increase and profitability of technological industries some countries are deciding not
to manufacture shoes in hopes of making more money in other industries.
Identification of the companys internal strengths and weakness
The footwear industry as well as all other industries around the world are preparing for a
loss in revenue due to a sluggish economies and the onset of war. Because of these factors
companies around the world are preparing themselves for a decline in sales and stock
prices. Due to the organization of the European Union and the disbursement of the Euro
some economic discomfort in participating countries may be felt. In addition to those listed
above other economic changes may be felt through the increase of inflation and
unemployment in Asia and the Pacific Rim, Latin America, and Russia, consequently
having a negative effect on shoe sales. Furthermore the fluctuation of foreign currency
and interest rates, as well as a sluggish US economy may also have negative effects on the
industry.
As the nature of science and technology change new advances are being made, but because
of the industries competitive nature each company makes their own advances, and then
copyrights them. The industry has come very far by studying the fashion, leisure, fitness
and sport consumers.
Slow international economies especially in countries where manufacturing occurs may
decrease in international profits. In addition with the initiation of war on a global level, as
well as terrorist alerts, people are generally spending less in an effort to prepare for
whatever comes to pass. The Nike mission is “to bring innovation and inspiration to every
athlete in the world. If you have a body, you are an athlete.” As long as there are athletes,
there will be Nike.
Nature of the external environment surrounding the company
The athletic footwear industry has experienced strong growth in the last twenty years.
Men and women ranging from the casual athlete to the elite competitor are always looking
for the latest and greatest shoe. “The US athletic shoe market is a $15 billion-per-year
