When University of Oregon track coach Bill Bowerman poured rubber onto a waffle iron one day in 1971, he had no idea he was about to change not only the athletic shoe industry, but the entire world of sports. His original idea was to create a good American running shoe for one of his top runners. This waffle shoe that Bowerman created was the most innovative shoe of that time and marked the beginning of Nike in the athletic shoe industry. Bowerman, along with Phil Knight, an Oregon track star who Bowerman coached, founded Nike that year. The name Nike comes from the Greek Goddess of Victory, which symbolizes Nike’s marketing attitude. The company’s now-proven strategy of building superior products around popular athletes has forever changed the face of sports marketing. As running became less popular at the beginning of the 1980s and basketball began to gain popularity, Nike began focusing its marketing attention on basketball shoes. Using Michael Jordan to endorse their basketball shoes, Nike was able to communicate with its consumers effectively and subsequently, profits skyrocketed. While standing on the top of the shoe industry, Nike continues to look for ways to increase profits by expand

The success that Nike has achieved throughout its history speaks for itself. The Swoosh is now known worldwide and Nike continues to be the leading force in the sports industry. Nike’s strategy of using its powerful branding along with popular athletes to market its products is a proven strategy. Nike’s original success stemmed from its technical superiority over its competitors and they have continued to lead the industry in product development and innovation. Nike markets more than just shoes and apparel though; it markets a way of life. Read Schuchardt sums up this idea the best when he says, “What Nike is really selling, of course, is not shoes or athletic clothes, but the mythology of sport, and the surrounding philosophy of youth, health, fitness, and the sort of in-your-face rebellion that appeals to the adolescent in all of us” (Schuchardt). This lifestyle, which Nike promotes through its products, demonstrates the power of the Swoosh. Nike could use the Swoosh to sell anything from pianos to pizza, but it has worked best in the sports and fitness market, although anything is possible in the future.

Over the thirty-year existence of Nike, they have shown the results of effective marketing by staying at the top of the athletic shoe industry. Nike has been able to penetrate different markets using many different market strategies. In order for Nike to continue to grow and expand, they must continue reaching beyond the world of sports. One possible suggestion would be to continue to improve factory and labor conditions overseas to help the overall company image. Another suggestion would be to develop a different line of clothing and apparel, to penetrate markets outside the sports market. Some potential products include formal wear, office equipment, bicycles, or even automobiles. Throughout its history, Nike has used the power of its brand and logo to market and sell products. The progress it has shown throughout its history shows the potential that Nike has not only in the sports industry, but markets outside the realm of sports.

A final environmental factor, which Nike must face, is its competitors. Nike has both direct and indirect competitors who they compete with on a daily basis. Some direct competitors that Nike has include Adidas, Reebok, and Converse. Some indirect competitors include Wal-Mart, Target, and other discount stores. Nike’s challenge is to gain a strategic advantage by putting a superior product above the products of their competitors. Nike has many strategic advantages over its competitors. One obvious advantage is the brand name and logo of Nike. The name Nike and the Swoosh logo are known worldwide and are associated with high-quality products. This gives Nike an initial advantage right away over its competitors. Another strategic advantage that Nike has is its ability to promote its product through top athletes. Names like Michael Jordan, Mia Hamm, and Tiger Woods are associated with Nike products. Consumers relate with these athletes and purchase goods based on what these athletes are using or wearing. This gives Nike a distinct advantage over its competitors. Nike also has the resources available to research and develop new products, which many of their competitors do not have. This allows Nike to develop the latest innovations in sports technology, which gives them a distinct advantage when marketing their new products.

Nike can also use these improvements in technology as a source of promoting its products. By satisfying people’s needs on the web, Nike can therefore build relations with new customers. Since people of all demographics are now having access to computers, Nike can get a better understanding of what consumers want. Another way Nike has been able to get its name into the spotlight is by equipping championship sports teams. For example, each member of the Crenshaw High School basketball team was giv