Nike

Phil Knight, a University of Oregon business student and middle-distance runner, developed his entrepreneurial vision while attending Stanford University Graduate School of Business from 1959 to 1962. His business theory proposed that Japanese shoe manufacturers could compete effectively with established German brands through lower manufacturing costs. After touring the Onitsuka factory in Japan in 1962, Knight returned to the United States and partnered with his former track coach, Bill Bowerman, to establish Blue Ribbon Sports in 1964.

The founders initially operated as distributors for Japanese shoemaker Onitsuka Tiger, with both partners investing equally in the business. Rather than pursuing traditional retail distribution, Knight and Bowerman sold shoes directly from Knight's automobile at track meets throughout the Western United States. This hands-on sales approach allowed them to build relationships with athletes and gather direct feedback on product performance.

The company reached $1 million in sales by 1969, demonstrating the viability of their business model and direct-sales strategy.

In 1971, the company split from Onitsuka and officially renamed itself Nike, Inc. That same year, the company commissioned what would become its iconic swoosh logo for $35. The name change coincided with the company's shift from distribution to original product design and manufacturing, establishing Nike as an independent footwear brand.

The company went public in 1980, providing capital for expansion and establishing Nike as a major player in the athletic footwear industry.

Nike's marketing strategy evolved significantly in the 1980s, with the company signing basketball player Michael Jordan to a revolutionary endorsement deal in 1984. This partnership established a new model for athlete endorsements in the sporting goods industry. In 1988, Nike launched its "Just Do It" advertising slogan, which became one of the most recognized marketing campaigns in corporate history.

Phil Knight served as chief executive officer until 2004 and continued as chairman of the board until his retirement in 2016.

Bill Bowerman, who coached track and field at the University of Oregon for 24 years starting in 1948, applied his coaching experience to footwear design. He led the university to four NCAA track titles and coached 16 sub-four-minute milers during his tenure, giving him extensive insight into athletes' performance needs.

Between 1965 and 1967, Bowerman designed the Cortez running shoe after observing stress fractures in distance runner Kenny Moore. The Cortez featured a cushioned innersole, soft sponge rubber in the forefoot and heel top, hard sponge rubber in the heel middle, and a firm rubber outsole. By July 1973, Runner's World magazine had identified it as "the most popular long-distance training shoe in the U.S."

In 1967, Bowerman modified the Onitsuka Tiger design to create the Tiger Cortez, demonstrating the company's evolution toward original product development.

Bowerman's most significant technical innovation came between 1970 and 1972 when he developed the waffle sole. The design originated from an experiment in which Bowerman melted urethane in his family's waffle iron to create a flexible, lightweight sole with gridded traction. Hand-built versions of this design debuted at the 1972 Olympic trials under the name "Moon Shoe." Nike refined the concept into the Waffle Trainer, which was released in 1974.

The waffle sole represented a departure from traditional flat rubber outsoles, offering improved traction and reduced weight. Bowerman held eight registered patents related to his footwear innovations, including designs for an external heel counter and improved spike placement.

Bowerman's design philosophy emphasized that footwear "must be three things, it must be light, comfortable and it's got to go the distance." His innovations also included wedged heels, cushioned mid-soles, and nylon uppers, all of which became standard features in athletic footwear design.