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Nike Analysis

In: Business and Management

Submitted By cbookay
Words 2496
Pages 10
Nike Analysis
Financial Management
Spring 2016

Nike Inc. is one of the world’s largest marketer of athletic footwear and apparel, holding more than 37 percent of the market share. Nike is a multinational company having factories and retail stores in over 160 countries. However, Nike was not an overnight success as it took years to build the brand and create profitability.
The idea of Nike came about in 1962 by Phillip Knight, a Stanford University business graduate. Traveling in Japan after finishing business school, Phillip Knight got in touch with a Japanese firm that made athletic shoes, the Onitsuka Tiger Co., and arranged to import some of its products to the United States on a small scale. This was until 1963, Knight took his shoe delivery to a track meet which sprung a partnership between Knight and William Bowerman, his former track coach.
Knight and Bowerman, continued and worked hard on creating the best running shoes that gave the best results. Through development, Bowerman and Knight were able to sell these shoes and gain immense profitability. The business was quickly taking off which in turn, led to Bowerman and Knight hiring employees, who would then sell shoes out their cars. In 1967, the first retail space was purchased and with vast sales, it resulted in expanding the business to other parts of the United States.
In 1970 The famous Nike swoosh which adds ultimate value and eye appeal to their shoes was designed by Carolyn Davidson a Portland State University student. She was paid $35 at the time for her design. Later on, Davidson was award with stock that is worth over $640,000. The slogan Nike has “Just Do It” was inspired by Gary Gilmore a serial killer who said “lets do it” prior to being executed.

The first ever signed endorsement for Nike came from Romanian tennis player Ilie Nastase in 1972. However today,…...

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