NIKE

                       How was Nike founded?

The story of Nike begins with the story of Blue Ribbon Sports back in 1964. Around that time, Phil Knight had just gone through University of Oregon followed by a stint at Stanford for his MBA, leaving him with two crucial experiences that set the trajectory of his future.

At University of Oregon, he ran for the school’s track and field team, putting him into contact with their coach, Bill Bowerman. Aside from an intensely competitive ethos, Bowerman displayed a fascination with optimizing his runners’ shoes, constantly tinkering with different models after learning from a local cob                             

Knight got the chance to put this theory to the test with a trip to Japan shortly after his 1962 graduation. He struck a deal with a group of Japanese businessmen to export the country’s popular Tiger shoes into the U.S.

                             History of Nike 

In 1965, the ever-inventive Bowerman proposed a new shoe design to the Tiger shoe company, one that sought to provide the right support for runners with a cushioned innersole, soft sponge rubber in the forefoot and top of the heel, hard sponge rubber in the middle of the heel, and a firm rubber outsole.

This design would turn out to be both a major success and source of conflict between Blue Ribbon and its Japanese supplier. Dubbed the Tiger Cortez, the shoe dropped in 1967 and became an instant hit for its comfortable, sturdy, and stylish design.

Around the time of its success, though, relations soured between Blue Ribbon and Tiger. Knight claims that the Japanese company was seeking a way out of its exclusivity deal with Blue Ribbon and sought to sink the company. Tiger claims to have discovered Blue Ribbon Sports selling their own version of the Tiger Cortez under a new line of shoes they called “Nike.”

Either way, the two formally split in 1971 with a lawsuit from Tiger following. A judge eventually settled that both companies could sell their own versions of the model, leading to the only sneaker to become a best-selling model for two different shoe companies as the Nike Cortez and the Tiger Corsair (now sold by Tiger’s modern incarnation, Asics).Following the split with Tiger, Blue Ribbon Sports fully rebranded itself as Nike. Phil Knight initially wanted to call the company “Dimension 6,” but Jeff Johnson, thankfully, got the inspiration for Nike after seeing the Greek goddess of victory’s name in a dream. Before this though, the new brand needed its own logo. They reached out to a design student at the nearby Portland State University, Carolyn Davis, to provide sketches. Phil Knight reluctantly settled on a swoosh design, reportedly saying, “Well, I don’t love it, but maybe it will grow on me.”

                                Nike Timeline

1964 – Phil Knight and Bill Bowerman found Blue Ribbon Sports.

1971 – Cutting ties with Onitsuka Tiger (now Asics), Blue Ribbon Sports becomes Nike Inc., using swoosh logo created by Portland State University student Carolyn Davis for $35

1971 – Bowerman comes up with iconic sole pattern for Waffle Trainers after putting rubber into a waffle iron

1972 – Romanian tennis player Ilie Nastase becomes the first athlete to sign an endorsement with Nike.

1979 – Nike introduces patented “Air” technology with new Tailwind shoe.

1980– Nike completes IPO with a price of 18 cents a share.

1984 – Nike signs Michael Jordan, launching Air Jordan series

1987 – Nike drops ad for new Air Max shoes set to The Beatles’ “Revolution,” making it the first ad to use the band’s music.

1988 – First “Just Do It” campaign launches with ad featuring 80-year-old running icon Walter Stack running across the Golden Gate Bridge.

                                  Controversy

Nike has faced a long history of controversy over its labor practices. The company was founded on a principle of finding cheaper labor to produce same-quality goods and followed this unfailingly, till it finally came back to bite them.

Nike’s factories were initially in Japan, but then moved to cheaper labor in South Korea, China, and Taiwan. As the economies of these countries developed, Nike again shifted, moving away from labor in South Korea and Taiwan to focus on China, Indonesia, and Vietnam .Nike’s factories were initially in Japan, but then moved to cheaper labor in South Korea, China, and Taiwan. As the economies of these countries developed, Nike again shifted, moving away from labor in South Korea and Taiwan to focus on China, Indonesia, and Vietnam.

Not much was noted of this until activist Jeff Ballinger published a report in 1991, documenting the poor working conditions of Nike’s operations across Indonesia. This was followed with a popular article in Harper’s Magazine, detailing the life of an Indonesian Nike employee who worked for 14 cents an hour.

                          How Green is Nike?

While Nike’s taken strides to increase its eco-friendliness, joining the Sustainable Apparel Commission and implementing a number of reusable materials in its clothing, it still has a way to go. Nike has claimed to be working toward elimination of these toxic chemicals. While these claims have been met with dubiousness over the past couple years, in 2018, Nike showed some serious signs of growth, expanding its PFC-free portfolio

                     What’s Happening in 2019?

Over 2019, most news on Nike has revolved around its political stances. Days before the Fourth of July, the company canceled the release of a sneaker bearing the 13-star American flag of Betsy Ross on the shoe’s heel. Reportedly, this decision came after Colin Kaepernick privately voiced his criticisms of the design to Nike, seeing as the 13-star flag represented America during a time of slavery and has been used in tandem with the Confederate flag by hate groups including the Ku Klux

                                 Nike Stock

As with many companies in 2019, Nike’s fate has been closely tied to the ongoing speculation over tariffs in the current China-U.S. trade war. Given that Nike manufactures roughly 27% of its apparel in China, the prospect of increasing tariffs poses a real problem to its supply chain. The company has been proactive in dealing with this issue, slowly shifting more of its operations from China into Vietnam.