Overview: Nike, Inc. (stylized as NIKE) is an American multinational corporation known for designing, manufacturing, and selling athletic footwear, apparel, and sports equipment. Headquartered near Beaverton, Oregon, it is the largest supplier of athletic shoes and apparel in the world, generating over US$46 billion in revenue during its fiscal year 2022. As of 2024, Nike employs 83,700 people worldwide, and the brand itself was valued at over $32 billion in 2020, making it the most valuable brand among sports businesses.

Foundation and Early History:

• Founded on January 25, 1964: Nike was initially established as Blue Ribbon Sports (BRS) by University of Oregon track athlete Phil Knight and his coach Bill Bowerman.
• Initial Operations: The company started as a distributor for Onitsuka Tiger (now ASICS) from Japan. The early sales were conducted at track meets, with Phil Knight selling shoes from his car.
• First Year Sales: BRS sold 1,300 pairs of Japanese running shoes, generating $8,000 in revenue in its first year.
• Expansion: By 1966, BRS expanded its operations by opening a retail store in Santa Monica, California, followed by a distribution facility on the East Coast in 1967.

The Birth of Nike:

• Name Change to Nike: In 1971, due to growing tensions with Onitsuka Tiger and a desire to create its own line of footwear, BRS was renamed Nike, Inc. after the Greek goddess of victory.
• The Swoosh Logo: The iconic Nike Swoosh logo, designed by graphic designer Carolyn Davidson, was first used in 1971 and registered as a trademark in 1974.
• The Moon Shoe: Bill Bowerman famously used his wife’s waffle iron to create a new rubber sole that would improve grip and lightness. This led to the creation of the “Moon Shoe” in 1972, a precursor to the Waffle Trainer, which revolutionized athletic footwear.

Key Milestones:

• 1976: Nike’s first advertising campaign was launched, marking the beginning of a long relationship with the advertising agency John Brown and Partners.
• 1980: Nike reached a 50% market share in the U.S. athletic shoe market and went public.
• 1988: Nike’s most famous slogan, “Just Do It,” was introduced in a Wieden+Kennedy ad campaign, cementing Nike’s global marketing appeal.
• 1990: Nike moved to its eight-building World Headquarters campus in Beaverton, Oregon, and opened the first Niketown store in Portland.
• 1994-2000s: Nike made several key acquisitions, including Bauer Hockey (1994), Hurley International (2002), and Converse (2003), further expanding its global presence and product offerings.

Expansion and Global Presence:

• Product Diversification: By the 1980s and 1990s, Nike diversified its product offerings to include gear and apparel for various sports such as basketball, soccer, and tennis, and expanded its reach to global markets.
• Sports Sponsorships: Nike grew its global influence through sponsorships with high-profile athletes and sports teams, including partnerships with basketball legend Michael Jordan, soccer star Cristiano Ronaldo, and tennis champion Serena Williams.
• Retail Expansion: The company opened Niketown retail stores in major cities around the world, further increasing its brand visibility.

Leadership and Corporate Evolution:

• Phil Knight’s Leadership: Co-founder Phil Knight served as Nike’s CEO and later as Chairman before stepping down from his leadership role in 2016.
• CEO Transition: Mark Parker, the long-time CEO, transitioned out in 2020, with John Donahoe taking over as CEO to guide the company through the digital age.

Acquisitions and Strategic Shifts:

• Acquisitions: Over its history, Nike has acquired various brands to enhance its portfolio, including Cole Haan (1988), Converse (2003), and Bauer Hockey (1994), among others.
• Divestitures: Nike also divested itself of certain brands like Umbro, Cole Haan, and Hurley, refocusing on its core footwear, apparel, and sportswear products.
• Digital Integration: In recent years, Nike has focused on enhancing its digital presence by acquiring companies like Zodiac (2018) for consumer data analytics, Celect (2019) for predictive analytics, and RTFKT Studios (2021), a virtual shoe company specializing in NFTs.

Nike’s Market Position and Brand Recognition:

• Most Valuable Sports Brand: Nike is consistently ranked as one of the world’s most valuable brands, with a market valuation surpassing $32 billion in 2020.
• Innovations in Sportswear: Nike continues to lead in footwear innovation, introducing products like Air Max and Flyknit, as well as leveraging technologies such as Nike+ for fitness tracking.
• Cultural Influence: Through powerful ad campaigns like “Just Do It” and endorsements from iconic athletes, Nike has become a symbol of success, perseverance, and victory, maintaining a prominent position in global sports culture.

Current Operations and Future Directions:

• Global Headquarters: Nike operates its headquarters in Beaverton, Oregon, a sprawling campus that houses research and design facilities and supports the company’s innovation.
• Direct-to-Consumer Focus: In recent years, Nike has shifted its focus to direct relationships with customers, moving away from Amazon sales and emphasizing e-commerce and digital engagement through apps and online platforms.
• Commitment to Sustainability: Nike continues to focus on sustainability, with goals for using recycled materials in products, reducing waste, and promoting eco-friendly manufacturing processes.

Conclusion: Nike, Inc. has transformed from a small distributor of Japanese shoes into the world’s leading athletic brand, driven by innovation, marketing genius, and strategic acquisitions. With a focus on digital transformation, sustainability, and expanding its global influence, Nike continues to shape the future of sportswear and remain a dominant force in the global market.