Nike – Startup Story | Founder| CEO | Funding | History | Competitors

Introduction:

NIKE, Inc. designs, develops, markets, and sells high-quality footwear, apparel, equipment, accessories, and services. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes.

It focuses on NIKE Brand and Brand Jordan product offerings in seven key categories: running, basketball, football, men’s training, women’s training, NIKE sportswear, and action sports. It also markets products designed for kids, as well as for other athletic and recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling.

About Nike:

Nike, Inc. is an American multinational association that is involved in the design, development, manufacturing, and worldwide marketing and sales of apparel, footwear, accessories, equipment, and services. It employs more than 44,000 people worldwide and in 2014 the brand alone was valued at $19 billion (€17,5 billion), making it the most valuable brand among sports businesses. Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max, and other as well as subsidiaries including brands Jordan, Hurley Int., and Converse.

Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of “Just Do It” and the Swoosh logo (which represents the wing of the Greek goddess Nike). The mission of Nike Inc. is to drive product innovation for athletes everywhere. Countless ideas are tested in pursuit of aiding performance, injury risk reduction, enhancing perception and feel, and delivery of innovative products to athletes.

Nike Founder & Team:

Founded by Bill Bowerman and Phil Knight on January 25, 1964, as Blue-Ribbon Sports, the company became officially Nike, Inc. on May 30, 1971.

The company’s world headquarters are situated near Beaverton, Oregon, in the Portland metropolitan area (USA). It is a major producer of sports equipment and one of the world’s largest suppliers of athletic shoes and apparel.

History of Nike:

1950 – 1959: When Nike breathed its First Breath, it inhaled the Spirit of Two Men

Two visionary men pioneered a revolution in athletic footwear that redefined the industry. Bill Bowerman was a nationally respected track and field coach at the University of Oregon, who was constantly seeking ways to give his athletes a competitive advantage. He experimented with most importantly – innovations in running shoes. Phil Knight was a talented middle-distance runner from Portland, who enrolled at Oregon in the fall of 1955 and competed in Bowerman’s track program.

Upon graduating from Oregon, Knight earned his MBA in finance from Stanford University, where he wrote a paper that proposed quality running shoes that could be manufactured in Japan that would compete with more established German brands. But his letters to manufacturers in Japan and Asia went unanswered, so Knight took a chance. He made a cold call on the Onitsuka Co. in Kobe, Japan, and persuaded the manufacturer of Tiger shoes to make Knight a distributor of Tiger running shoes in the United States.

When the first set of sample shoes arrived, Knight sent several pairs to Bowerman, hoping to make a sale. Instead, Bowerman stunned Knight by offering to become his partner, and to provide his footwear design ideas to Tiger.

1960-1969: Founded on a Handshake, $500, and Mutual Trust

They shook hands to form Blue Ribbon Sports, pledged $500 each, and placed their first order of 300 pairs of shoes in January 1964. Knight sold the shoes out of the trunk of his green Plymouth Valiant, while Bowerman began ripping apart Tiger shoes to see how he could make them lighter and better, and enlisted his University of Oregon runners to wear-test his creations.

In essence, the foundation for what would become Nike had been established. But Bowerman and Knight each had full-time jobs – Bowerman at Oregon and Knight at a Portland accounting firm – so they needed someone to manage the growing requirements of Blue-Ribbon Sports. Enter Jeff Johnson, whom Knight had met at Stanford. A runner himself, Johnson became the first full-time employee of Blue-Ribbon Sports in 1965, and quickly became an invaluable utility man for the start-up company.

1970-1979: The Birth of the Nike Brand, and Company

Johnson created the first product brochures, print ads, and marketing materials, and even shot the photographs for the company’s catalogs. He designed several early Nike shoes and even conjured up the name Nike in 1971. Around this same time, the relationship between BRS and Onitsuka was falling apart. Knight and Bowerman were ready to make the jump from being a footwear distributors to designing and manufacturing their own brand of athletic shoes.

They selected a brand mark today known internationally as the “Swoosh,” which was created by a graphic design student at Portland State University, Carolyn Davidson. The new Nike line of footwear debuted in 1972, in time for the U.S. Track & Field Trials, which were held in Eugene, Ore. They featured a new innovation – an outsole that had waffle-type nubs for traction but was lighter than traditional training shoes.

BRS needed an athlete to endorse and elevate the new Nike line and they found a young man from the coastal town of Coos Bay, Ore, Steve Prefontaine. Prefontaine never lost any race at his home track over the one-mile distance, and quickly gained national exposure due to cover stories in magazines like Sports Illustrated and his fourth-place finish in 1972 in the 5,000m in Munich. He became a powerful ambassador for BRS and Nike after he graduated from Oregon, making numerous appearances on behalf of BRS and sending pairs of Nike shoes to prospective runners along with personal notes of encouragement.

His tragic death at age 24 in 1975 cut short what many believed would have been an unparalleled career in track – at the time of his death, he held American records in seven distances from 2,000m to 10,000m. But Prefontaine’s fiery spirit lives on within Nike; Knight has often said that Pre-is the “soul of Nike.”

1980-1989: A Decade of Transition and Rededication

Nike entered the 1980s on a roll, thanks to the successful launch of Nike Air technology in the Tailwind running shoe in 1979. By the end of 1980, Nike completed its IPO and became a publicly traded company. Phil Knight stepped down as president for more than a year in 1983-1984, although he remained the chairman of the board and CEO. By the mid-1980s, Nike had slipped from its position as the industry leader. Fortunately, the debut of a new signature shoe for an NBA rookie by the name of Michael Jordan in 1985 helped bolster Nike’s bottom line.

In 1987, Nike readied a major product and marketing campaign designed to regain the industry lead and differentiate Nike from its competitors. The focal point was the Air Max, the first Nike footwear to feature Nike Air bags that were visible. The campaign was supported by a memorable TV ad whose soundtrack was the original Beatles’ recording of ‘Revolution.’

A year later, Nike built on its momentum from the ‘Revolution’ campaign by launching a broad yet empowering series of ads with the tagline “Just do it.” The series included three ads with a young two-sport athlete named Bo Jackson, who espoused the benefits of a new cross-training shoe. In 1989, Nike’s cross-training business exploded, due to the incredibly popular “Bo Knows” ad campaign. By the end of the decade, Nike had regained its position as the industry leader, the first and only time a company in the athletic footwear/apparel industry has accomplished such a feat. Nike has never relinquished that position again.

1990-1999: Nike Extends Its Reach

Buoyed by a series of successful product launches and marketing campaigns, Nike entered the 1990s by christening its beautiful world headquarters in suburban Portland, Oregon.

In November of 1990, Portland became the first home to a new retail-as-theatre experience called Nike town, which would earn numerous architectural design and retail awards and spawn more than a dozen other Nike town locations around the USA and internationally. While Nike had designed footwear and apparel for golf and soccer for a number of years, the mid-1990s signaled a deepening commitment to truly excel in these sports.

In 1994, Nike signed several individual players from what would be the World Cup-winning Brazilian National Team. In 1995, Nike signed the entire team and began designing the team’s distinctive uniform. Nike also signed the US men’s and women’s national soccer teams, as well as dozens of national teams around the world. In 1996, Nike Golf landed a vastly talented but as-yet-unproven young golfer named Eldrick “Tiger” Woods for a reported $5 million per year. Competitors laughed and critics howled at Nike’s “folly,” until Tiger won the 1997 Masters by a record 12 strokes.

2000-Present: Leading a New Generation

Nike rang in the new millennium with a new footwear cushioning system called Nike Shox, which debuted in Sydney in 2000. The development of Nike Shox culminated in more than 15 years of perseverance and dedication, as Nike designers stuck with their idea until technology could catch up. The result was a cushioning and stability system worthy of joining Nike Air as the industry’s gold standard. The 2002 “Secret Tournament” campaign was Nike’s first truly integrated, global marketing effort.

Departing from the traditional “big athlete, big ad, big product” formula, Nike created a multi-faceted consumer experience in support of the World Cup. “Secret Tournament” incorporated advertising, the Internet, public relations, retail, and consumer events to create excitement for Nike’s soccer products and athletes in a way no single ad could ever achieve. This new integrated approach has become the cornerstone of Nike’s marketing and communications.

Today, Nike continues to seek new and innovative ways to develop superior athletic products, and creative methods to communicate directly with our consumers. The company has continued to expand in new ways, including strong growth in China and a deal to become the official sponsor of the National Football League (NFL) beginning in 2012.

Name & Logo:

The company takes its name from Nike, the Greek goddess of victory. The Swoosh is the logo of American sportswear designer and retailer Nike.

Nike Revenue:

NIKE annual/quarterly revenue history and growth rate from 2010 to 2022. Revenue can be defined as the amount of money a company receives from its customers in exchange for the sales of goods or services. Revenue is the top line item on an income statement from which all costs and expenses are subtracted to arrive at net income.

• NIKE’s revenue for the quarter ending February 28, 2022, was $10.871B, a 4.96% increase year-over-year.
• NIKE’s revenue for the twelve months ending February 28, 2022, was $46.820B, a 21.59% increase year-over-year.
• NIKE’s annual revenue for 2021 was $44.538B, a 19.08% increase from 2020.
• NIKE’s annual revenue for 2020 was $37.403B, a 4.38% decline from 2019.
• NIKE’s annual revenue for 2019 was $39.117B, a 7.47% increase from 2018.

Nike Funding & Investors:

• Nike is registered under the ticker NYSE: NKE.
• Nike has made 7 investments. Their most recent investment was on Dec 2, 2021, when All-Star Code raised $500K.
• Nike has made 4 diversity investments. Their most recent diversity investment was on Dec 2, 2021, when All-Star Code raised $500K.
• Nike has had 1 exit, which was Reflection.
• Nike has acquired 11 organizations. Their most recent acquisition was RTFKT on Dec 13, 2021.

Business Model of Nike :

Nike is primarily in the business of selling footwear and apparel for the following categories — Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training, and Sportswear. The company also owns the Converse brand.

In the past ten years, Nike grew its revenue at a compounded annual growth rate of 7.0% from US$19.0 billion in 2010 to US$37.4 billion in 2020.

The sportswear company places a strong emphasis on innovation — spending a great deal of time and resources working with their stable athletes to develop technologies to enhance the comfort and performance of their sportswear. Dri-Fit was one of their earliest innovations that is now a part of our daily lives. The fabric is made up of polyester fabric that transports sweat, heat, and, moisture away from the skin to the outside of the garment where it evaporates, keeping you dry. Along with that, Nike has also created Nike Air, Zoom, Free, Fly knit, fly weave, Fly Ease, ZoomX, React, and many others.

Once the design is finalized, Nike sends it to independent manufacturers around the world to manufacture them. Their footwear is supplied by 122 factories from 12 countries while their apparel is supplied by 329 factories from 12 countries — mostly from Vietnam, Indonesia, China, and Cambodia. Through their 81 distribution centers worldwide, Nike sells products to wholesalers and consumers on its e-commerce platform.

Other Services Offered through Nike:

The company provides a wide range of athletic footwear, apparel, equipment, and accessories to athletic trainers, runners, and cyclists.

Nike Competitors:

Nike’s top competitors include Anta, lululemon Athletica, VF Corporation, Adidas, ASICS, FILA, PUMA, Under Armour, Skechers, and New Balance.

Latest News:

• April 27, 2022 – The largest building at Nike World Headquarters demonstrates a commitment to championing athletes and making our world better for athletes.
• March 24, 2022 – In partnership with Vanessa Bryant, the relationship will focus on championing a new generation of fans and encouraging youth participation in sports.
• March 21, 2022 – BEAVERTON, Ore., Mar. 21, 2022, NIKE, Inc. (NYSE: NKE) today reported fiscal 2022 financial results for its third quarter ended February 28, 2022.
• March 16, 2022 – A conversation with Nike leaders on the progress we’re making toward our 2025 purpose commitments.
• March 10, 2022 – The company is rethinking design methods, manufacturing processes, and how it gets products back from athletes at the end of use to meet its goal of a zero-waste future.
• February 17, 2022 – Michael Jordan and Jordan Brand announce the opening of their second cycle of Community Grants to create more equitable futures for Black Americans.

Nike Future Plans:

The sports giant is now expecting 2022 revenue to hit over $50 billion. As with previous years, Nike is honing in on digital and DTC. The company is expecting to reach 50% digital — through its own channels and its partners — by 2025 (from 35% now).

Awards & Recognition of Nike:

Nike won 2 awards in 2019 and 3 awards in 2018. In 2019, Nike won Best Company Perks & Benefits and Best Company Compensation. In 2018, Nike won Best CEO 2018, Best Company Compensation, and Best CEOs for Diversity.

Some FAQs about Nike:

What is Nike most famous for?

The world’s largest athletic apparel company, Nike is best known for its footwear, apparel, and equipment.

What does Nike stand for?

In Greek mythology, Nike is the Winged Goddess of Victory.

What was Nike originally called?

Blue Ribbon Sports

Who is the CEO of Nike?

John Donahoe

How many stores does Nike have?

A number of Nike stores globally from 2009-2021. As of May 31, 2021, Nike operated a total of 1,048 retail stores throughout the entire world, a slight decline from 1,096 in 2020.

How many countries have Nike?

170 countries. 

What are Nike shoes made of?

The shoes are typically made of EVA foam, lightweight plastic, and mesh fabrics. 

Is Nike cruelty-free?

Nike is not cruelty-free because they use animal leather in many of their designs and models.

Conclusion:

Part of Nike’s success is owed to endorsements by such athletes as Michael Jordan, Mia Hamm, Roger Federer, and Tiger Woods. The NikeTown chain stores, the first of which opened in 1990, pay tribute to these and other company spokespersons while offering consumers a full range of Nike products. In the 1990s the company’s image briefly suffered from revelations about poor working conditions in its overseas factories.