Nike

It does not care if one is an excellent footballer, a tireless athlete or nimble footed runner. But it gives us the energy, the drive, the passion and the inspiration to play that football game, do those extra push ups and run that extra mile. It gives us hope and confidence and joins us in celebrating our victory, because its Nike after all that pushes us to 'Just Do It'. Thus it holds a special place in all our hearts. For many of us the day when we got 'Nike-ed', was the day when we decided to go 'branded'. 

Today, Nike has occupied such an iconic status that all the successful sportsmen gladly endorse it and sports fans swear by its name. As a business case, it is the symbolizes the perfect offspring of globalization. 

First of all, why is it called 'Nike' ?
Nike ( pronounced Nai-kee and not Niek ) is named after the Greek goddess of the same name. Goddess Nike is the sister of Kratos and Athena and stands for strength, speed and victory. However, the company was not always called Nike. It got this name only in 1978.

So what was it called before ?
In 1964, Phil Knight (an entrepreneur) and Bill Bowerman ( an Olympic coach ) founded 'The Blue Ribbon Sports' company which was renamed Nike in 1978. 

How many stores does Nike have worldwide ?
Nike has more than 700 stores in more than 160 countries.  All the stores are corporate owned. 

But how ethical has Nike been in its global expansion ? Hasn't Nike been in the news for wrong reasons because of labor issues ?
Nike has been accused of running "sweatshops" ( working environment with dangerous or difficult working conditions ) in many Asian countries. In one particular case, Nike was accused of using child labor in producing its soccer balls in Pakistan. Nike usually subcontracts its work in different countries to a local firm. In response to the charges Nike has denied prior knowledge of child labor employment by these sub-contractors. However, many countries such as Vietnam, Indonesia and South Korea where Nike production units are located are known to operate sweatshops. 

Nike endorses several celebrities. How important is celebrity endorsement to Nike ?
Celebrity endorsements are critical to Nike's growth strategy. The two most notable celebrities endorsed by Nike are Micheal Jordan and Tiger Woods. One of the most significant endorsement deals made by Nike was with Michael Jordan. In 1984, Nike paid Jordan $ 2.5 million for a 5 year contract, which was the start of a lifelong win-win relationship. Jordan's branding proved to be quite fruitful for Nike as it allowed Nike to enter into basketball arena hitherto dominated by Adidas and Converse. Nike launched a range of shoes named Air Jordan which today generates more than $ 1 billion in revenue for Nike. In 2001 Nike used Tiger Woods to launch 'Nike Golf' range of golfing equipment and apparel for which Tiger Woods was paid ( hold your breath... ) $ 100 million for a five year contract. In the first year itself Nike golf garnered $ 600 million in sales and is one of the fastest growing brands. 

Nike has probably one of the most  identifiable brand logo. What does it represent ?
In 1964, Phil Knight during one of his visits to a Portland State University as a professor, asked a student named Carolyn Davidson to design some graphics for a presentation of Blue Ribbon Sports Company ( it was not called Nike as yet ). He wanted a logo that suggested motion or movement and among several logos that the Ms. Davidson presented, Knight chose the 'swoosh' symbol only in 'lack of a better option'. Ms. Davidson was remunerated $ 35 for the logo. Later, when the logo was adopted by the company, she was also given undisclosed amount of company stock. 

What is Nike Air ?
Nike Air is a shoe technology that offers shows with durable ad lightweight cushioning. In a Nike Air shoe pressurized gas is captured inside a tough yet flexible urethane bag. Compression reduces the force of impact and then recovery allows the air unit to return to its original shape and volume. Air technology addresses the specific needs of the sport, the athlete's size, the terrain, the distance covered, and the speed and direction of movement. The bag may be located at heel, forefoot or both the locations. 

Finally, how much does it cost Nike to make a shoe ?
According to multiple independent researchers, the cost to make a Nike shoe (including material, labor  rent, shipping, duties ) is around $ 20 a pair. Add to this R&D cost , sales and promotion cost, it comes down to $ 50 a pair. Nike shoes sell upward of $150 which adds up all the power and promise that the brand Nike holds for a customer !