NKE Overview

Founded in 1964 and later incorporated in 1968, Nike Inc. (NKE), is one of the world’s leading producers of sportswear and equipment. Engaged in the design, development and worldwide marketing of footwear, apparel, equipment, and accessory products, Nike was formed by William Bowerman and Philip Knight under the company’s original name Blue Ribbon Sports.

Founded in 1964 and later incorporated in 1968, Nike Inc. (NKE), is one of the world’s leading producers of sportswear and equipment. Engaged in the design, development and worldwide marketing of footwear, apparel, equipment, and accessory products, Nike was formed by William Bowerman and Philip Knight under the company’s original name Blue Ribbon Sports.

Bowerman, a track and field coach at the University of Oregon from 1948-1972, was a legendary coach throughout his career, as his team compiled 24 NCAA individual titles, 4 NCAA team titles and 16 top-10 finishes throughout his career. Among those under his tutelage, were legendary track stars such as Steve Prefontaine, Mac Wilkins, Bill Dellinger and Kenny Moore, and little known Philip Knight.

Knight, a graduate of Oregon, ran track for Bowerman as a middle-distance runner earning varsity letters from the school in 1957-1959. Upon graduating from Stanford School of Business, after serving in the Army and Army Reserves, Knight traveled abroad and wound up in Kobe, Japan. It was here that the Nike co-founder sought the distribution right for the Japanese-made brand Onitsuka Tiger running shoes.

The Tiger shoes, Knight saw, were of high quality and low costs. With his persistence, Knight received the selling rights for the shoes and began selling them in the western U.S. Once in possession of the shoes, the first thing Knight did was send a pair to Bowerman.

Impressed with the construction of the shoe, Bowerman not only ordered the shoes for the university but also offered Knight a partnership to come up with their own designs for a better performing athletic shoe. Blue Ribbon Sports was officially formed.

It wasn’t until 1978, that the company changed its name to Nike, which takes its name from the Greek goddess of victory. In 1971, a graphic design student at Portland State University, Carolyn Davidson designed the infamous Nike “swoosh.” Davidson met Philip Knight while he was teaching accounting classes and she started doing some freelance work for his company, Blue Ribbon Sports.

Looking for a new design for a new product line of athletic footwear, Davidson was called upon for design ideas, charging a rate of $2 per hour. With numerous selections to choose from, the company ultimately decided on the swoosh. Davidson later billed Knight $35 for her design. In June 1972, the first running shoes bearing the Swoosh were introduced at the U.S. Track and Field Olympic Trials in Eugene, Oregon.

By 1980, Nike brand shoes had acquired nearly a 50% market share within the U.S., propelling the company to go public by the end of the year. Throughout much of the ‘80s, Nike did most of their advertising in print. It wasn’t until 1982, during the running of the New York Marathon, that Nike had their first television ad.

Nike offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and children’s shoes. The company also provides shoes for baseball, bicycling, skateboarding, tennis, volleyball, walking, cheerleading, golf, lacrosse, outdoor activities, wrestling, and various other recreational uses.

In addition, the company offers sports-inspired lifestyle apparel, athletic bags, and accessory items. Additionally, it provides a line of performance equipment, including socks, sport balls, protective equipment, golf clubs, eyewear, timepieces, electronic devices, bats, gloves, and various equipments designed for sports activities under the Nike brand name. The company also markets apparel with licensed college and professional team and league logos.

Headquartered in Beaverton, Oregon, Nike currently operates 296 retail stores throughout the U.S., and 260 stores internationally. Furthermore, Nike also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, John Varvatos, Jack Purcell, Cole Haan, Bragano, and Hurley.

In March 2008, Nike acquired Umbro Ltd. (Umbro), which designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of soccer, under the Umbro trademarks.

By May 2008, end of the fiscal year, sales in the U.S., including revenues from Cole Haan, Converse, Hurley, Umbro and Nike Golf, accounted for approximately 43% of total sales. During the same year, non-U.S. sales accounted for 57% of total revenues.

Nike currently competes with Adidas AG, Fila Korea Ltd., and New Balance Athletic Shoe Inc.

By BetterTrades