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NIKE
Nike, Inc has grown to be a global leader in the sporting goods industry. Nike’s founders were Bill Bowerman, a track and field coach and Phil Knight who was a runner that ran under Bowerman. They initially operated as a distributor for Japanese shoe maker Tiger, making most sales at track meets out of Knight's automobile. Nike is now recognized as the world’s leading designer, marketer and distributor of athletic footwear, apparel and accessories for a wide variety of sports and fitness activities
Like many companies, Nike’s goals were not to put so many shoes on so many people but to “maximize profits in the long run”. Knight realized that profit is how you judge success. It is the way saw if they had won or lost the competition. Nike’s values were that they wanted to have the right product at the most economical cost. They adopted a philosophy of providing a low cost, high quality shoe that the athlete could identify with. Their vision was that if they could make a high quality shoe at a low cost to the consumer, they would have the recipe for success. Nike’s performance realized a 30% market share by 1982. Their return on equity was 37% in the same year. Sales growth rose from 2 million in 1972 to 694 million in 1982.
In Nike’s infancy, there was very little diversity in the performance shoe arena. Nike had the notion that a one style fit all philosophy was detrimental to an athlete’s well being. They adopted the notion that a different shoe for different foot types as well as different utilities was needed. The market was hungry for a new product that addressed the new focus on health and fitness in the 1970s. These new athletes were wearing designer shoes and apparel to e ...