Meet: Phil Knight

Context

No introduction is needed. Nike is the world's largest supplier of athletic shoes and sports apparel. The most valuable brand among sports businesses ($37B).

• Founded in 1964 as ‘Blue Ribbon Sports’

• In 1971, changed to ‘Nike’ after the Greek goddess of victory

• As of 2023, Nike employed over 80,000 people worldwide

• The famous Nike logo was designed for just $35 by a student

Phil Knight’s story

When he started studying at Stanford, during a class about small businesses, Knight came up with the idea of importing high-quality and comfortable running shoes from Japan to America.

He argued that Japanese shoe production, which was relatively cheap, could sell better than German shoes - which was then the leading manufacturer and seller of sports shoes, mainly because of Adidas.

During a trip to Japan, he discovered Tiger brand shoes and signed a deal to distribute them in America. That was the official beginning of what would later become the great Nike company.

When Knight received his first shipment, he sent two pairs to his former running coach for an opinion. Bill Bowerman was immediately impressed and offered to be Knight's partner, leading them to form the Blue Ribbon Sports company.

Originally, they sold their lighter and comfortable shoes in person at running-track meetups around the country, with Knight even selling shoes out of the trunk of his car. By 1969 (5 years after its official beginning), Blue Ribbon Sports had sold $1 million worth of shoes. That year, Knight quit his second job.

Market differentiation

Innovation in the shoes was Nike's differentiation in the early days.

In his own words: "In the early days, anybody with glue and a pair of scissors could get into the shoe business, so the way to stay ahead was through product innovation. We happened to be great at it… Bill had always customized off-the-shelf shoes for his runners”.

But that changed over time. Today, Nike’s focus is on marketing.

"Now we understand that the most important thing we do is market the product... We used to think that everything started in the lab. Now we realize that everything spins off the consumer. And while technology is still important, the consumer has to lead innovation. We have to innovate for a specific reason, and that reason comes from the market. Otherwise, we’ll end up making museum pieces."

Career advice

In the last chapter of Phil's book, ‘Shoe Dog’, his words got me very emotional:

“For some young entrepreneur, some athlete or painter… it’s all the same drive… I tell them to hit pause and think long and hard about how they’d like to spend their time and with whom they’d like to spend it… don’t settle for a job, profession, or even a career, seek a calling. Even if you don’t know what that means, seek it. If you’re following your calling, the fatigue will be easier to bear, the disappointments will be fuel, the highs will be like nothing you’ve ever felt… and have faith in faith, in the way you define faith in your heart”.

Don’t settle. Do something you love. With people you love.

If you want to watch an interview with Phil Knight, watch it here.

Until the next one,

– Steve