Just Do It

Before There Was Nike

1948-Bill Bowerman is hired as University of Oregon’s
track coach (1948-1973)
1957-Bowerman meets Phil Knight, a runner on his
track team
1962-Knight writes research paper at Stanford, goes
on trip, and Blue Ribbon Sports is born
Before There Was Nike cont.
1963-Knight’s first shipment of Tiger arrives, 200 pairs
of shoes
1964-Knight and Bowerman team up in Blue Ribbon
Sports (BRS)
1968-First BRS store opened in Eugene, OR
1970-Bowerman experiments with wife’s waffle
maker, forever changing running shoes
Nike Is Born
1971-Swoosh is created for a fee of $35
1971-Jeff Johnson has a dream
1973-Steve Prefontaine becomes first major track
athlete to wear Nike
1976-Nike shoes are seen on most athletes in Olympic
time trials
1978-John McEnroe signs with Nike
Nike Is Evolving
1979-Nike Air cushioning is created
1981-BRS merges with Nike
1984-58 Nike-supported athletes take home 65
medals in L.A. Olympics
1985-Nike signs Michael Jordan, AIR JORDAN is
born
1988-Just Do It ad is born
1990-Present-Nike stores started opening, Nike
World in Oregon, Nike Town in Oregon (1990) and
New York (1996)
Nike Is Evolving cont.
1998-Knight commits Nike to enforcing more strict
manufacturing safety
1999-Co-founder Bill Bowerman dies
2000-Nike develops Swift Suit for Sydney Games
2003-International sales exceed U.S. sales
How Is Nike Made?
Knight decides to outsource and market
Japan-South Korea and Taiwan-Indonesia and China
(1990)
Indonesia minimum wage barely $1 (1991)
Things got bumpy; foreign strikes and newspaper
articles lead to Jeff Ballinger
Jeff Ballinger vs Nike
Labor activist hired to run Asian-American Free
Labor Association office in Indonesia
Ballinger felt that Nike mistreated foreign employees
Spent years publishing information against Nike
Went mostly unnoticed until the 1990s, coincided
with the strikes and people started paying attention
Outcry And Results
Government raised min. wage from 2100 to 2500
rupiah (roughly $1.25)
1992-Workers wages compared to Michael Jordan’s
endorsement contract, it would take 44,492 years to
make the equivalent
Protestors started assembling at events such as the
Olympics and the opening of new Nike stores
Doonesbury comic strip
Michael Jordan and Jerry Rice hit by media
Andrew Young
Knight hires Andrew Young in 1997
Basically said they are doing good but need to do
better
What about wages?
1998
Nike was losing popularity
1,600 worker layoff
Schools started denying Nike as athletic supplier and
students started protesting
Knight changes attitude
How Is Nike Doing Now?
Named “Advertiser of The Year” by the Cannes
Advertising Festival (2003)
Phil Knight steps down as CEO but remains the
chairman
Annual revenue over $12.3 billion (2004)
Annual revenue of $13.7 billion (2005) up 12% over
previous year
Strengths

Name and image

Been there done that
Weaknesses

Questionable track record

Upper management issues
Nike’s response to criticism
Opportunities
New athlete name recognition
Website needs improvement
Merging with other companies
Community projects
Who Else Is Nike?
Cole Haan (1988)
Bauer (1995)
Hurley (2002)
Converse (2003)
Exeter Brands Group (Nike created 2004)
Starter (2004)
Threats
Other companies
Protestors
Lawsuits (Marc Kasky)
Nike
THE END