The company was founded in 1964 by Knight and Bill Bowerman and officially became Nike in 1971. The company began its IPO in 1980. At the time, Bowerman had a reduced role in the company and a reduced stake. Nike, originally known as Blue Ribbon Sports (BRS), was founded on January 25, 1964 by Phil Knight and his trainer Bill Bowerman. [12] The company first operated in Eugene, Oregon, as a distributor for Japanese shoe manufacturer Onitsuka Tiger and made most of the sales at Knight`s auto racetrack meetings. Bowerman designed the Cortez model in 1965 and worked with the Tiger Company (now known as Asics) to market it.[12] In 1967, the sneaker came out and was a success. However, relations between the companies deteriorated and lawsuits eventually followed. Eventually, Tiger and Blue Ribbon were allowed to make versions of the shoe. Nike, Inc., formerly (1964-78) Blue Ribbon Sports, an American sportswear company based in Beaverton, Oregon. It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, track and field coach at the University of Oregon, and his former student Phil Knight.
They opened their first retail store in 1966 and launched the Nike-branded shoe in 1972. The company was renamed Nike, Inc. in 1978 and went public two years later. By the beginning of the 21st century, Nike had retail stores and distributors in more than 170 countries, and its logo — a curved tick called “Swoosh” — was recognized around the world. After mainstream success in the late 1990s, animation company Will Vinton Studios sought outside investors due to rapid growth. Knight took a 15% stake in the company in 1998, and his son Travis, who graduated from Portland State University after an unsuccessful attempt at a career in rap music, worked in the studio as an animator. Citing mismanagement, Knight eventually bought Will Vinton Studios and took control of the company`s board of directors in collaboration with Nike executives.[22] In late 2003, Knight appointed his son to the board of directors and after Vinton resigned — before leaving the company with severance pay — Knight renamed the company Laika. He then invested $180 million in Laika, and the studio released its first feature film, Coraline, in Stop Motion in 2009. Coraline was a financial success and Travis Knight was later promoted to the roles of CEO and President of Laika. [22] [23] So it may be surprising that Nike, the accomplished marketer, didn`t realize the importance of marketing until late in life: after hitting the $1 billion mark in sales.
After more than a decade of meteoric growth, Nike mispriced the aerobics market, exceeded its own management capabilities, and took a disastrous step toward casual shoewear. All these problems forced the company into a period of intense self-examination. Ultimately, says founder, president and CEO Phil Knight, the company realized that the way forward was to expand its focus from designing and manufacturing the product, where Nike had always excelled, to both the consumer and the brand. In June 2015, Knight and Nike announced that he would step down as president of the company, with President and CEO Mark Parker as his successor. [30] [31] Knight`s removal from Nike`s board of directors came into effect at the end of June 2016. In September 2017, Knight decided to come out of retirement to put black back on UNC jerseys for the Phil Knight Classic in Portland, Oregon. [32] [33] Part of Nike`s success is due to the support of athletes such as Michael Jordan, Mia Hamm, Roger Federer and Tiger Woods. NikeTown stores, the first of which opened in 1990, pay tribute to these and other company spokespeople, offering consumers a full line of Nike products. In the 1990s, the company`s image briefly suffered from revelations about poor working conditions in its foreign factories. While Nike was originally born as Blue Ribbon and focused primarily on training shoes, it eventually evolved into a powerhouse of a sneaker company. Not only is Nike a company with some of the best-selling shoes in the world, but it`s also a huge company that includes several brands like Starter, Converse, and Hurley.
In many cases, they were the upstart when they entered a sport and became the most popular brand. While MJ earned less than $100 million of his time with the Chicago Bulls, his net worth remains over $1 billion thanks to his contract with Nike and his majority stake in the Charlotte Hornets. In February 2021, Nike acquired Datalogue, a New York-based company focused on digital sales and machine learning technology. [44] Although Knight has resigned as CEO, he retains the role of president. Nike is a publicly traded company, so technically no one “owns” the entire company. However, Phil Knight has a huge amount of shares, more than anyone else. HBR: Nike changed the athletic footwear industry with technological innovations, but today many people know the company through its eye-catching ads and sports celebrities. Is Nike a tech company or a marketing company? Nike`s “Swoosh” logo, now considered one of the most valuable logos in the world, was commissioned in 1971 for $35 by Carolyn Davidson, a graphic design student.
[18] According to Nike`s website, Knight said at the time, “I don`t like him, but he`s going to grow on me.” In September 1983, Davidson received an undisclosed amount of Nike stock for his contribution to the company`s brand.