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TABLE OF CONTENTS
From Greek Myth to Sports and Fitness Powerhouse.............................................................4 Origins and History.................................................................................................................5 Acquisitions.............................................................................................................................6 Products...................................................................................................................................8 .............................................................................................................................................9 Headquarters.........................................................................................................................10 Nike's world headquarters are surrounded by the city of Beaverton, Oregon but are technically within unincorporated Washington County....................................................10 Manufacturing.......................................................................................................................12 ...........................................................................................................................................13 Environmental record............................................................................................................13 Marketing strategy................................................................................................................14 Kasky vs. Nike......................................................................................................................16 Advertising............................................................................................................................16 Beatles Song......................................................................................................................16 Minor Threat Ad...............................................................................................................17 Horror Ad..........................................................................................................................18 Chinese-themed Ad...........................................................................................................18 Pretty.................................................................................................................................19 Sponsorship...........................................................................................................................20 Jordan Brand History............................................................................................................22 In the Beginning................................................................................................................22 Really Not That Interested....................................................................................................22 A Legacy (and a Controversy) is Born.............................................................................23 ...........................................................................................................................................24 Changes.............................................................................................................................24 ...........................................................................................................................................25 Moving Out.......................................................................................................................25 Jordan Trainers. From this point on, Jordan Brand products no longer featured the Nike name or Nike Swoosh, and their only connection to Nike,Inc is a fine print address for Nike headquarters to be used for insurance purposes.......................................................25 The Shoes Changed the World..........................................................................................25 REUSE-A-SHOE..................................................................................................................26 Innovation.........................................................................................................................27 How Old Tread Becomes New Track...............................................................................27

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Nike thinks like runners. saying. They consistently create innovative. In order to promote their products. Other athletic companies. I consider that people choose Nike because it's got a good reputation for making a quality shoe and clothing. Nike gives us the heart and soul we need in order to . Nike is an ideal honoree.” For Nike. memorable messages to promote their products or brand to a much more diverse range of demographics. only appeal to the existing. Nike smokes the competition. Nike's advertisements have preached inclusiveness. "Nike advertising makes women feel good about being female. I have chosen to debate this subject mostly because of the qualities this brand promotes. merit. all offering inspiration to the masses.clothing and apparel is the fact that the producers understand the needs and desires of customers and give their best in order to satisfy the consumers. being an athlete doesn’t necessarily mean participating in competitive sports.3 There’s An Athlete in Every One of Us Generally speaking. For what it's worth people are drawn to the brand due to the athletes it endorses and overtime people feel some sort of brand loyalty. exclusivity and arrogance will get walloped by the qualities listed above. By standing for superiority. “enjoy the weather”. which significantly improves women's self-esteem and enhances their chances of success in all areas. “If you have a body. Nike strives to visualize and inspire an active way of life for ordinary human beings so they will discover their innate athletic identity and feel more powerful in their shoes or gear. “courage”. Nike reaches a much larger customer base since they believe that there is an athlete in every one of us. Their advertising has always encouraged women to participate in sports. you are an athlete. Another reason why I consider Nike owner of a dominant position in the world of sporting shoes. In comparison to other brands. "Shame on you. Since The WIN Awards celebrate film. like Asics or Underarmor. serious athlete as a way to promote their products. They’ve done numerous campaigns like. television and advertising that dispels female media stereotypes." They champion the idea that false authority. and “play”. WIN Founder Phyllis Stuart praised Nike. the Tiger Woods promotions have effectively waved a scolding index finger at country-club exclusivity in America. victory and liberation. it means pushing the physical limitations of your body to discover its potential. For example. thunder thighs and tomboy knees has pleased the Women's Image Network so much they've named the brand 2006 Advertiser of the year. and spirit in a nation that doesn't always prize those. “my better is better”. Nike's celebration of female body parts such as big butts. Nike Co-founder Bill Bowerman once said. And these ads don't simply say. When women see a NIKE ad they feel more capable”. Their products are designed by people who use them so they are always thinking of pioneering ways to better their products and us. For instance.

Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. We make excuses or lose motivation. near the Portland metropolitan area of Oregon. do you really think they would be as popular as they are? From Greek Myth to Sports and Fitness Powerhouse Nike. Hurley International. As of 2008.000 people worldwide. if Nike didn’t make physical activity a way of life. Umbro and Converse. Physical activity is not something that comes easy to the average person. In addition to manufacturing sportswear and equipment.6 billion USD in its fiscal year 2008 (ending May 31. 2008). Nike+. the Greek goddess of victory. The company was founded on January 25. Inc is a major publicly traded sportswear and equipment supplier based in the United States. to equip us with the motivation and character that we need in order to create a way of life where quitting is not an option. Visually speaking. the company operates retail stores under the Niketown name. As such. with the highly recognized trademarks of "Just do it". always encouraging you to push yourself to Just Do It. The company is headquartered in Beaverton. according to The Oregonian. Nike is like a coach. 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight. Nike markets its products under its own brand as well as Nike Golf. The company takes its name from Nike (Greek Νίκη pronounced [NI-KEY]). their strong brand presence and reputation of endorsing the best athletes makes people believe they are buying the best gear to make them better. in 1978. Nike Skateboarding and subsidiaries including Cole Haan. Nike Pro. . Nike addresses the issues that slow us down. especially around New Years. Nike sponsors many high profile athletes and sports teams around the world. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $18. and officially became Nike. Air Jordan. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon. Inc. it employed more than 30. Besides. mentally and physically.4 become a runner or an athlete.

the sponsorship of athletes became a key marketing tool for the rapidly growing company. the relationship between BRS and Onitsuka Tiger was nearing an end.Beginning with Ilie Nastase. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger. BRS introduced its first line of Nike shoes.Inc. with the name Nike derived from the Greek goddess of victory. In 1978. which was released in the summer of 1971. After the University of Oregon resurfaced the track at Hayward Field. BRS . and in 1966. which would bear the newly designed Swoosh. was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. How Nike is born professional athlete to sign with BRS/Nike. Bowerman began experimenting with different potential outsoles that would grip the new urethane track more effectively. Bowerman developed and refined the socalled 'waffle' sole which would evolve into the nowiconic Waffle Trainer in 1974. Inc. originally known as Blue Ribbon Sports.5 Origins and History Nike. BRS prepared to launch its own line of footwear. located on Pico Boulevard in Santa Monica. the first Bowerman. In February 1972. IlieNastase(left) . making most sales at track meets out of Knight's automobile. His efforts were rewarded one Sunday morning when he poured liquid urethane into his wife's waffle iron. BRS opened its first retail store. The company's profits grew quickly. By 1971. The first shoe to carry this design that was sold to the public was a football shoe named "Nike". officially renamed itself to Nike. California. The company's first self-designed product was based on Bowerman's "waffle" design.

The ads were created by Portland-based advertising agency Wieden+Kennedy. Nike expanded its product line to include many other sports and regions throughout the world. Acquisitions • As of November 2008. rather than television ads. • . Its growth was due largely to 'word-of-foot' advertising (to quote a Nike print ad from the late 1970s). Nike.6 By 1980. which had formed several months earlier in April 1982. and Umbro. which was chosen by Advertising Age as one of the top five ad slogans of the 20th century. It was agency cofounder Dan Wieden who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign. Converse Inc. Nike and Wieden+Kennedy have created many indelible print and television ads and the agency continues to be Nike's primary today. Together. San Franciscan Walt Stack was featured in Nike's first "Just Do It" advertisement that debuted on July 1. and the campaign has been enshrined in the Smithsonian Institution. owns four key subsidiaries: Cole Haan. Nike's first national television commercials ran in October 1982 during the broadcast of the New York Marathon. Hurley International. Throughout the 1980s. Nike's first acquisition was the upscale footwear company Cole Haan in 1988. 1988. Inc. and the company went public in December of that year. Nike had reached a 50% market share in the United States athletic shoe market.

in a deal said to be worth £285 million (about $600m). • In July 2003. Nike paid $305 million to acquire Converse Inc. 2008. Nike acquired sports apparel supplier Umbro. .. makers of the iconic Chuck Taylor All Stars. Nike bought surf apparel company Hurley International from founder Bob Hurley. known as the manufacturers of the England national football team's kits. • On March 3.7 • In February 2002.

They currently also make shoes. Products Nike produces a wide range of sports equipment. basketball and cricket. shorts. ice hockey. lacrosse. Nike has recently introduced cricket shoes. Association football. a high performance basketball shoe designed with the environment in mind. baseball. designed for skateboarding. Nike NYX. jerseys. for a wide range of sports including track & field. In 2008. baselayers etc.0. called Air Zoom Yorker. The most recent additions to their line are the Nike 6. tennis. and Nike SB shoes. . Their first products were track running shoes. Nike introduced the Air Jordan XX3.8 • Other subsidiaries previously owned and subsequently sold by Nike include Bauer Hockey and Starter. designed to be 30% lighter than their competitors'.

athletics. including shoes and apparel for sports activities like association football. chav culture and hip hop culture as they supply urban fashion clothing. In the video game Gran Turismo 4 there is a car by Nike called the NikeOne 2022. concealable intelligence motes in a wireless sensor network. cycling. aquatic activities.basketball. wrestling. . and children. golf and cross training for men. auto racing and other athletic and recreational uses. It is currently the premier training program in the U. Nike recently teamed up with Apple Inc. In 2004. running. Nike also sells shoes for outdoor activities such as tennis. golf.9 Nike sells an assortment of products. volleyball. Some of Nike's newest shoes contain Flywire and Lunarlite Foam. to produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano. they launched the SPARQ Training Program/Division. American football. women.S. skateboarding. association football. combat sports. it has been criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small. These are materials used to reduce the weight of many types of shoes. baseball. cheerleading. American football. Nike is well known and popular in youth culture. designed by Phil Frank. tennis. While the product generates useful statistics.

and lobbying by the company that ultimately ended in Oregon Senate Bill 887 of 2005. The annexation standoff soon led Beaverton to attempt a forcible annexation. . Beaverton is specifically barred from forcibly annexing the land that Nike and Columbia Sportswear occupy in unincorporated Washington County for 35 years. That led to a lawsuit by Nike. When Nike proposed expanding their headquarters in that direction.3 km²) of nearby Beaverton land that soon fronted the Jared Co-operation. This distinction. After a year.10 Headquarters Nike's world headquarters are surrounded by the city of Beaverton. while Electro Scientific Industries and Tektronix get that same protection for 30 years. expectations defined by the zoning already in place when Nike bought the land. which included a threat by Nike to move 5. Oregon but are technically within unincorporated Washington County. has been a source of contention between the city of Beaverton and Nike since the company purchased 74 acres (0. Under that bill's terms.000 jobs out of the state. Beaverton's request was mostly consistent with Metro's transit-oriented development plans for the region. but the lack of accommodation was something that Nike did not forget. according to The Oregonian. Beaverton at first wanted them to build housing near the MAX station and criss-cross the property with two public roads. Beaverton backed down from the requirement for housing.

500 in additional buildings in office complexes nearby. Each building is named for a legendary coach or athlete who has had a long affiliation with Nike.000 employees are based at the world headquarters. together providing approximately 2.3 m) tall. Joan Benoit Samuelson. The dirt from the lake was deposited around the perimeter of the grounds to create a 14-foot (4. sloping berm that helps create a campus-like feel.000 square feet (190. Pete Sampras. The first phase of construction was completed in 1990. There are 17 buildings.81 km2) of land. named for Joe Paterno and C. that together provide daily child care for approximately 500 children of Nike employees. Approximately 5.000.000-2. Mia Hamm. including Tiger Woods. Vivian Stringer.000 m2) and is adjacent to a protected wetland area that runs through the center of the campus. covers 6 acres (24. John McEnroe and several others. . 2001 and 2008. with another 2. followed by expansions in 1992. Two of the buildings are child development centers. fed by a natural spring. Michael Jordan.000 m2) of office space. Lance Armstrong.11 The world headquarters is situated on approximately 200 acres (0. A man-made lake. 1999.

Vietnam. Philippines. Nike has disclosed information about its contract factories in its Corporate Governance Report. Pakistan. .12 Manufacturing Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Nike is hesitant to disclose information about the contract companies it works with. including Indonesia. Thailand. Most of the factories are located in Asia. Taiwan. China.and Malaysia. due to harsh criticism from some organizations like CorpWatch. India. However.

Nike has also been praised for its Nike Grind programme (which closes the product lifecycle) by groups like Climate Counts. while also producing a throw-away mindset due to trends founded upon fast fashion and cheap clothing. today's electronic textile plants spend significant amounts of energy. Because Nike is a large participant in this manufacturing. Nike tries to counteract their influence with different projects. climate change. One way the expanding textile industry affects the environment is by increasing its water deficit. Nike ranks among the top 3 companies (out of 56) on a survey conducted about climate-friendly companies. In addition to this. and fossil fuel and raw material consumption. pollution.13 Environmental record The consistently growing textile industry often negatively impacts the environment. . Although these combined effects can negatively alter the environment. According to a New England-based environmental organisation Clean Air-Cool Planet. many of their processes negatively contribute to the environment.

14 In addition to this. one Earth Day 2008 was a Nash wearing Nike's had been constructed in leather and synthetic the factory floor. Another project Nike's Reuse-A-Shoe program. These are . a shoe that February 2008 from pieces of leather waste that derived from Trash Talk Shoe also featured a up rubber from a shoe recycling first performance basketball from manufacturing waste. The sole composed of groundprogram. Marketing strategy Nike's marketing strategy is of the company's success. Nike's many elements besides summarised below. The material that recycled shoes is then used to surfaces. premium-brand. Nike claims this is the shoe that has been created it only produced 5. such as basketball and playgrounds. running tracks. an important component Nike is positioned as a well-designed and lures customers with a centering around a brand distinctive logo and the it". professional teams teams. Nike marketing strategy image which is attained by advertising slogan: "Just do products by sponsorship athletes. started in program that benefits community by collecting order to process and is created from the help create sports courts. However. but pairs for sale. selling expensive products. is Nike's longest-running both the environment and the old athletic shoes of any type in recycle them. campaign that Nike began for commercial that featured Steve Trash Talk Shoe. 1993. Nike promotes its agreements with celebrity and college athletic marketing mix contains promotion.000 Nike has begun is called This program.

2003). This would mark the beginning of a remarkably successful partnership between Nike and W+K that remains intact today." a satirical look at what a runner might face on the morning of January 1. basketball or tennis shoe.15 From 1972 to 1982. who created what many consider Nike's first 'brand advertising' in 1977." which featured a series of famous and everyday athletes in a stream of athletic pursuits. In 1982. created by newly formed ad agency Wieden+Kennedy.[37] The second Emmy for advertising earned by Nike was for a 2002 spot called "Move. Nike advertising has generated its fair share of controversy. The first was for "The Morning After. during the New York Marathon. Nike also has earned the Emmy Award for best commercial twice since the award was first created in the 1990s. Nike relied almost exclusively on print advertising in highly vertical publications including Track and Field News. In 1976. Most of the early advertising was focused on a new shoe release. The Cannes Advertising Festival has named Nike its 'advertiser of the year' on two separate occasions. . John Brown and Partners. the first and only company to receive that honor twice (1994. In addition to garnering awards. Nike aired its first national television ads. A print ad with the tagline "There is no finish line" featured a lone runner on a rural road and became an instant classic. 2000 if every dire prediction about Y2K came to fruition. the company hired its first outside ad agency. The success of this simple ad inspired Nike to create a poster version that launched the company's poster business. essentially outlining the benefits of the running.

Court agreed to review the case case back to trial court without the constitutional issues..16 Kasky vs. Nike Consumer activist Marc Kasky filed a lawsuit in California in 2002 regarding newspaper advertisements and several letters Nike distributed in response to criticisms of labor conditions in its factories. The of court before any finding on statements. but the California Supreme Court overturned this ruling. The local court agreed with Nike's lawyers. leaving the denial of Nike's immunity drew a great deal of attention civil liberties.000 to Capitol Records Inc. Nike responded that the false advertising laws did not cover the company's expression of its views on a public issue. The case from groups concerned with sweatshop activists. Kasky) but sent the issuing a substantive ruling on parties subsequently settled out the accuracy of Nike's California Supreme Court's claim as precedent. The United States Supreme (Nike v. the Beatles' recording company. against the wishes of Apple Records. . claiming that the corporation's communications were commercial speech and therefore subject to false advertising laws. for the right to use the Beatles' rendition for a year. and that these were entitled to First Amendment protection. Kasky claimed that the company made representations that constituted false advertising. as well as anti- Advertising Beatles Song Nike was the focus of criticism for its use of the Beatles song "Revolution" in a 1987 commercial. which held the North American licensing rights to the Beatles' recordings. Nike paid $250.

. EMI Records Inc. Capitol-EMI countered by saying the lawsuit was 'groundless' because Capitol had licensed the use of "Revolution" with the "active support and encouragement of Yoko Ono Lennon. and Apple. "It's such a confusing myriad of issues that even people who have been close to the principals have a difficult time grasping it." One condition of the out-of-court settlement was that terms of the agreement would be kept secret. EMI and Capitol Records. A spokesman for Yoko Ono noted. On June 27. Apple sued Nike Inc. for appropriating imagery and text from Minor Threat's 1981 self-titled album's cover art in a flyer promoting Nike Skateboarding's 2005 East Coast demo tour. 1987 article written by the Associated Press. and Wieden+Kennedy advertising agency for $15 million. Yoko Ono. "a tangle of lawsuits between the Beatles and their American and British record companies has been settled. The dispute was eventually settled out of court between Nike & Minor Threat. Minor Threat Ad In late June 2005. Nike received criticism from Ian MacKaye." According to a November 9. Ringo Starr. 1989 article in the Los Angeles Daily News. owner of Dischord Records. a shareholder and director of Apple. Capitol Records Inc.. The settlement was reached among the three parties involved: George Harrison. Paul McCartney." Nike discontinued airing ads featuring "Revolution" in March 1988.. and fans of both and announced that they tried to remove and dispose of all flyers. and front-man of defunct punk band Minor Threat.17 According to a July 28. Nike Skateboarding's website issued an apology to Dischord. Attorneys on both sides of the Atlantic have probably put their children through college on this. guitarist/vocalist for Fugazi & The Evens. They state that the people who designed it were skateboarders and Minor Threat fans themselves who created the ad out of respect and appreciation for the band. Minor Threat. Yoko Ono later gave permission to Nike to use John Lennon's "Instant Karma" in another ad. The exact details of the settlement have never been disclosed.

18 Horror Ad In this ad. In early 2007 the ad was reinstated in China for unknown reasons. Nike spokespeople retorted it was meant to be humorous. an ad about LeBron James beating cartoon martial arts masters and slaying a Chinese dragon in martial arts offended Chinese authorities. since it is the woman who defeats the man." First aired during the opening ceremony of the 2000 Summer Olympics (Friday). sprints away. Hamilton is obviously in much better shape than the would-be killer and. ESPN followed suit. WB. "Why Sport?" which is quickly answered with "You'll live longer. but the ad continued to air with little or no controversy on several other networks. Suzy Favor Hamilton Chinese-themed Ad In 2004. The ad was later banned in China. The final shot shows the killer out of breath. UPN and Comedy Central. including FOX. the ad titled "Horror" generated roughly 200 complaints (according to NBC) that caused the network to pull the ad by Sunday. Hamilton herself stated the ad was inspirational. Protesters argued that the ad made light of violence against women. thanks to her Nike gear. limping away and ends with the tagline. while others claimed it was just too scary to watch. and to satirize the typical horror flick where a helpless woman was destined to be slashed. . a parody of horror films. especially for children who enjoy watching the Olympics. who called the ad blasphemous and insulting to national dignity and the dragon. Olympic runner Suzy Favor-Hamilton is running a bath in a remote wilderness cabin when a chainsaw-wielding masked killer appears.

subsidiaries.The ad was a popular and critical success. and went on to win several of the industry's top awards.19 Pretty In the run up to the 2006 U. Open.S.S. Nike began running Pretty. (including outlets and stores) and in 160 countries in company also called NIKEiD which allows customize styles of Nike deliver them manufacturer to Nike sells its international independent licensees. The has a program at nikeid. . including two Cannes Gold Lions. a television advertisement featuring Maria Sharapova. Nike sells its than 25.000 U. and product to more retailers in the Nike's own "Niketown" approximately the world. customers to designs of some shoes and directly from the consumer. products in markets through distributors.com.

that proved to be one of the biggest boosts to Nike's publicity and sales.20 Sponsorship Nike has signed top athletes in many different professional sports to endorsement deals in order to further promote their products. Some of the more successful tennis players currently or formerly sponsored by Nike include: James Blake. Lindsay Davenport. it was the signing of basketball player Michael Jordan in 1984. Maria Sharapova. Lleyton Hewitt. However. Jackie Joyner-Kersee and Sebastian Coe. Rafael Nadal. Nike has sponsored many other successful track & field athletes over the years such as Carl Lewis. Besides Prefontaine. with his subsequent promotion of Nike over the course of his storied career with Spike Lee as Mars Blackmon. Nike's first professional athlete endorser was Romanian tennis player Ilie Năstase. Roger Federer. Nike has been one of the major clothing/footwear sponsors for leading tennis players. Marion Bartoli. Jim Courier. Daniela Hantuchová. Today. During the past 20 years especially. Juan Martín del Potro. and the company's first track endorser was distance running legend Steve Prefontaine. Serena Williams . Andre Agassi. Prefontaine was the prized pupil of the company's cofounder Bill Bowerman while he coached at the University of Oregon. Pete Sampras. Mary Pierce. the Steve Prefontaine Building is named in his honor at Nike's corporate headquarters.

Red Star. Aston Villa.21 Nike is also the official kit sponsor for the Indian cricket team for 5 years. Juventus. Inter Milan. Nike sponsors several of the world's top golf players. FC Barcelona. Celtic and PSV Eindhoven. Manchester United. such as Arsenal. Nike also sponsors various minor events including Hoop It Up (high school basketball) and The Golden West Invitational (high school track and field). Porto. including Tiger Woods. Nike uses web sites as a promotional tool to cover these events. Steaua. Nike also sponsors some of the leading clubs in world football. from 2006 to 2010. Nike was awarded the contract for US$43 Million. Trevor Immelmen and Paul Casey. . Nike will also sponsor Dundee United from summer 2009. Borussia Dortmund.

were not interested in offering a better deal than Nike. An athlete as paid for wearing the products but little else resulted from an endorsement. his agent. himself. and they were willing to put the . The running shoe phenomenon that has fueled their sales in previous years was slowly dying and they needed a way to revitalize and reinvent themselves in order to appeal to another segment of the market. and few companies were willing to risk so much of their marketing budget to bet on one athlete to promote their products. had other ideas. and hoped to sign on with either company. At the same time. but Nike hoped that his appeal would generate sales. They saw a chance. though. an opportunity. Nike was a struggling shoe company. Jordan. there was not a tremendous impact from a shoe endorsement. and heart. saw a golden opportunity in Nike's offer to create a new line of shoes called "Air Jordans. though. While Jordan. Really Not That Interested At that time." and urged him to give Nike a chance. David Falk. with Larry Bird and Magic Johnson on board as spokesmen. He was a champion with personality. and Adidas wasn't interested at all at the time.22 Jordan Brand History In the Beginning Early in 1984. Converse. did not initially see the significance of Nike's offer. rookie player Michael Jordan was already endorsing several products. It's possible that Jordan's reluctant attitude stemmed from this fact as much as his allegiance to Converse and Adidas products Nike saw something special in Michael Jordan. He had always preferred Adidas or the Converse shoes endorsed by North Carolina Coach. charisma. perhaps due to Kathe Dassler's death the same year. Dean Smith.

He is reported to have said. All and Jordan's numbers that put the Air the road to household . those are Devil colors". Throughout the entire meeting Jordan was reported to seem disinterested and bored. banned the shoe in response. all in black and red. Jordan said to his agent. the Air Jordan legacy was born. of more than these to keep Jordan's feet public eye. "Let's make the deal. was happy to pay the shoes on and in the this controversy spectacular year served to Jordan line on becoming a name.23 company on the line. Peter Moore created the first AJ Logo with a basketball with wings lifting it. but the bold black and red styling of the Jordan I flouted this convention. plus royalties and other fringe benefits.5 million deal for 5 years. most basketball shoes were white. jumpsuits. serious fines of game. "I can't wear that shoe. Michael's remarks upon seeing the designs were less than enthusiastic. after much persuasion from his manager and parents. Peter Moore presented sketches of AJ1 shoes. Finally. The video presentation featured slow-motion clips of Jordan's college career and some of his high-flying Olympic moves with a background of then hit music "Jump" by the Pointer Sisters. They knew from the beginning that he would be a star and wanted to help him get there. Before the AJ I. The introduction of the Air Jordan I turned the athletic shoe industry upside down. Oregon to view a special video presentation and proposal though he later stated in retrospect that he went with no intention of signing with Nike. but them anyway. Nike signed Jordan to a $2." A Legacy (and a Controversy) is Born With those four words. The NBA from the league Jordan wore racking up up to $5000 a course. Nike. the reluctant rookie agreed to fly to the Nike headquarters in Portland. but as he and Falk left the meeting. Nike Head Designer. and sports apparel.

a make-it-or-break-it moment. At Jordan's request. due in part to the high retail price. Ultimately. Hatfield has stated that this was a very tense time. the Air Jordan III was a threequarter cut basketball shoe made of high quality. Eventually the process of designing the shoes and matching apparel drew Jordan in and helped reinforce his commitment to Nike. With the release of the Air Jordan XV and Jordan's second retirement. No one had ever approached the business of designing a shoe like this and Jordan had never had anyone ask his opinion until that time. It was at this time that Tinker Hatfield stepped in to help the struggling shoe line. Immediately. the Jordan logo changed to the familiar Jumpman logo of today. They began to court Jordan. . lighter than average materials. This non-standard approach to the process of designing basketball shoes led the Air Jordan III to rocket off the charts with its popularity. it was the good advice of Michael's father that saw it through.24 Changes After winning 1986-87 Slam Dunk competition at Seattle Coliseum. Michael was ready to bolt. It's reported that he advised his son to stay with the people who had done a good job for him. but when it came time to talk about the Air Jordan III. hadn't been stellar and designers Peter Moore and Rob Strasser had left Nike to start their own company. Reaction to the Air Jordan II. though. Hatfield did something completely new and unheard of. and Tinker went on to design all the Jordan models up to the Jordan XV. hoping to develop the business around him This was a turning point for the line. both Hatfield and Jordan stepped back from the Jordan line and other designers took the reigns to continue to the legacy. His first instinct was to sit down and talk with Michael one on one and ask for his input about the design.

the new Jordan Brand released the Air Jordan XIII. Inc. like the Jordan XXI (Jordan 21) on the way. A number of Jordans have been designed after Jordan's cars and some of the more recent models. and their only connection to Nike. and Air Jordan Trainers. Michael Jordan. have always started with their namesake. No matter what happens to the signature Air Jordan line. it's a good bet that the brand and its tradition of quality. The Shoes Changed the World Air Jordan shoes have consistently been among the best selling basketball shoes since their creation in 1985. family until late in 1997 Nike unveiled a new marketing plan and Jordan became its own sub-brand of Nike. the last Air Jordan will be the Jordan XXIII (Jordan 23). Air Jordan Team. . To mark this change. Jordan Brand products no longer featured the Nike name or Nike Swoosh.25 Moving Out Air Jordan Shoes were a part of the Nike. in honor of the man. from the Jordan III to the most recent model. and life into account and incorporate these feelings into the shoes. some wonder when the Air Jordan line will be retired while others speculate that. The Jordan brand is a household name and people of all ages and social strata line up eagerly for the release of the latest model. high-fashion basketball and athletic shoes will continue long after Air Jordans have retired. hobbies. From this point on. Some of this success can be attributed to the fact that the shoes. The designers take his ideas.Inc is a fine print address for Nike headquarters to be used for insurance purposes.

Tracks – Atlas Track & Tennis mixes Nike Grind Rubber with virgin rubber to create • synthetic indoor and outdoor running tracks. collecting 22.840.26 REUSE-A-SHOE Nike company has started an innovative program of recycling called Reuse-A-Shoe in order to reduce its environmental impact that has provided material to nearly 300 sport and playground surfaces.412 pairs of shoes since 1990. Nike partners with topquality surfacing companies. Soccer and Football Fields – Turf companies use Nike Grind Rubber granules as the infill – the “soil” – of a synthetic field. providing them with Nike Grind materials and working together to develop innovative products usually containing between 10 and 40 percent Nike Grind: • • • Outdoor Basketball Courts – Rebound Ace and Atlas Track & Tennis use Nike Grind Foam in outdoor basketball courts. Indoor Basketball and Volleyball Courts – Nike Grind Foam and Upper are used to create cushioning beneath these surfaces. To create these surfaces. .

These slices are then fed through grinders and purified.But today. Nike Shox. Innovation Waffle-iron track spikes. Tomorrow. This way the materials being used will go through many cycles of design. Innovation has been at the heart of Nike's philosophy since the start. That's where Reuse-A-Shoe and Nike Grind come in. which gives it a colorful look as well. Once purified. game-changing products – time and again. the Wilsonville facility uses a “slice-and-grind” technique. these substances become three unique types of Nike Grind: . apparel and equipment will also be recycled into new Nike products. its goal is that sports shoes. a playground. these programs are helping it on the journey towards its vision of a closed loop business – where waste at different stages of our operations. from its contract factories to transportation and eventually the product at the end of its life.get turned into Nike Grind material? It depends which of the next two facilities processes them: -Wilsonville. a basketball court. Nike innovation is about more than product performance. Training Ground creates interlocking tiles for use in home gyms.27 • • Playgrounds – Playtop creates impact-absorbing safety surfacing for playgrounds using Nike Grind Rubber. How Old Tread Becomes New Track Exactly how do your old kicks . Part of Nike's Considered design ethos. It's what has allowed it to create iconic.rubber outsole. cans and paper do now. It incorporates more than 25 percent pre-consumer Nike Grind Rubber. Oregon: Opened in 1993. It's about innovation for a better world. Today your worn-out sports shoes can already live on in something new: a track. can be recycled – as much as possible of it back into new Nike product.and manufacturing waste . Air Jordans. where each shoe is cut into three slices . foam midsole and fabric upper. manufacture and use. Just like bottles. Interlocking Flooring Tiles – Using around 90 percent recycled rubber.

.28 • • • Nike Grind Rubber. playground surfacing and consumer products. made from the shoe's midsole. volleyball courts and equestrian surfacing products. -Meerhout.three high-quality materials ready to be put back in the game. is used as a cushion for outdoor basketball and tennis courts. then passes the material through a series of complex separators. as well as futsal fields. No matter how your shoes are processed. grinds shoes up whole. interlocking gym flooring tiles. Belgium: The Belgium facility. Nike Grind Foam. is used in track surfaces. the end result is the same . which opened in 2005. such as new footwear outsoles and trim items like buttons and zipper pulls. made from the shoe's fabric upper. Nike Grind Foam and Nike Grind Upper. made from the shoe's outsole. This also produces Nike Grind Rubber. Nike Grind Upper. is used in the creation of cushioning pads for indoor basketball.

B.29 REFERENCES Good to Great: Why Some Companies Make The Leap.. Katz (1995). Strasser (1993) The Story of Nike (Spirit of Success) by Scott Hays (1999)\ Sole Provider: Thirty Years of NIKE Basketball by Robert "Scoop" Jackson (2002) Who's Afraid of Niketown?: Nike-urbanism. Out of Nowhere: The Inside Story of How Nike Marketed the Culture of Running by Geoff Hollister. Jim Collins. and Others Don’t .. Bowerman and the Men of Oregon: The Story of Oregon's Legendary Coach and Nike's Cofounder by Kenny Moore (2007). Branding And the City of Tomorrow by Friedrich Von Borries Nike by Nicholas Flokos . Just Do It: The Nike Spirit in the Corporate World by Donald R. Swoosh: Unauthorized Story of Nike and the Men Who Played There by J.(2001).