How Nike Built an Empire
A brief history of Nike
This story starts in 1960, When two people “Phil Knight & Bill Bowerman”, Together starts a shoes trading company. This partnership for a shoe company was very good. Because Phil did MBA in Finance. And during his college days, he was an athlete. And there on the other side, In Phil’s college, Bill was his college coach. So from start, He has good knowledge about running fields & shoes. Phil, A Japanese company named “Tiger” Who manufactures shoes, To sell their shoes in the US market they approached him. And luckily, They give Phill Exclusive contract of selling their shoes in US market. After this deal was final,
Phil goes to Bill And starts a company named “Blue Ribbon sports” In the start, they imported shoes from japan, And store them in their storerooms And started selling them in their cars. Some years passed, After some years they opened their store. The business was successful but not scalable. Because Japanese people, The remaining shoes that left after fulfilling their own demand, They use to export that to the US. Because of this NIKE was not able to expand the business. Because their demand was not fulfilled. And finally, that year arrived, In 1972, by raising money from a Japanese trading company, They both started the brand name “NIKE”.
How Nike became successful
How Reebok Defeated Nike
Everything was fine, except for one glitch. The issue was that running was a fairly popular sport until the late 1970s. And NIKE’s whole line was solely for running shoes. And until 1983, this market was becoming saturated. Nike’s sales have ceased. Their earnings were declining. At the same time, a massive bomb burst. Reebok was NIKE’s main rival at the time, and they released freestyle aerobic shoes. As soon as these shoes arrived, people began moving from running to aerobic. And the popularity of these aerobic sneakers changed everything for NIKE in an instant. People used to adore NIKE, but now no one asks about them. And Reebok’s sales rose to the point that it became the world’s leading athletic brand.
NBA Banned Nike shoes in NBA Matches
The Air Jordans were gleaming crimson. They looked fantastic. However, the NBA has prohibited the use of Air Jordans. But, you know what, Nike was so astute that they took advantage of the situation. Following this occurrence, NIKE produced a commercial starring Micheal Jordan. “The NBA kicked us out,” he said, “but you don’t have to be a member of the NBA to wear Jordans.” And this commercial was a tremendous smash. Because Air Jordan sneakers were extremely limited edition. And now that they’ve been prohibited, they want more of it. Finally, in 1985, Air Jordan was made accessible to the public, and within three days, all of the sneakers were sold out. This is where Air Jordan’s success may be found now. After only two months on the market, Air Jordan has sold more than 70 million dollars. And by watching NIKE announce a 10-year deal extension with Michael Jordan. Whenever he promotes, he just promotes NIKE sneakers. Following that, NIKE struck more exclusive partnerships with sportsmen in the following years. The lifetime contract of Michael Jordan, Tiger Woods, LeBron James, and Ronaldo is worth one billion dollars.
The Nike business model
The Nike marketing strategy
The Nike brand
1. Your foundation defines the strength of your business.
The most significant function in establishing the foundation of every organisation is the “Business structure,” like NIKE does. Simply put, one employee is responsible for more than one management. For example, if you are a sales supervisor, you will notify the sales director as well as the footwear head if there is an issue. This little detail expedites communication inside the company. As a result, every problem is resolved swiftly. And the consumer receives excellent service. In reality, NIKE shifted their structure from product base to category best in 2008. Nike now primarily supports four sports divisions. Running, international football, basketball, and training
In reality, NIKE’s shop layouts are built such that whether you buy shoes or not, if you’re in the store, you’ll buy something.
2. Learn to accept sometimes you are ahead, And sometimes you are behind.
Ego has no place in business. It is not a terrible thing to have competition. However, we must constantly understand that we will be ahead of the competitors at times and behind them at others. When NIKE was defeated by Reebok, they admitted that they were behind the times. They had to improvise. And today, where is NIKE and where is Reebok?
3. Learn to make a castle with every stone thrown at you.
In life or in business Stones will constantly be thrown at you. Criticism is a necessary part of the process. NIKE has been through a lot. They were prohibited in the NBA. Or people began burning their shoes and protesting. They were also stripped of their Olympic sponsorship. NIKE, on the other hand, saw a chance in every problem. And NIKE’s profit from all of these instances That much was never accomplished through conventional processes.