The company was begun in 1964 as Blue Ribbon Sports; the name was changed to Nike in 1978. It began as a partnership between an MBA candidate and a former track coach who had manufactured running shoes in his spare time. The company built its reputation on its technological breakthroughs in athletic shoes, and helped to introduce specialized shoes for different sports. Prior to companies such as Nike bringing forth this concept, most athletes used general purpose athletic shoes regardless of the sport in which they were participating, or the strains it put on their feet.
In addition to technology, Nike also brought comfort and fashion to the industry, although Reebok, a competitor, was more closely attuned initially to the effect that stylish shoes could have on fashion-conscious consumers. The company has a high profile in the international market, and ranked number one among American athletic shoe manufacturers in 1990. Annual rates of change for the five years ending 1994 were an impressive 26.5 percent for sales and 39 percent for profits; over the ten-year period ending in 1994, sales increased at an annual rate of 17 percent while earnings increased at 21.5 percent (Rindos 1672).
Nike markets athletic shoes in distinctive and fashionable styles to adults. The shoes are well made and are designed for the various demands of different sports. Altogether, the company markets 300 models of shoes in 900 color combinations for 20 sports, including hiking, tennis, general fitness, running, basketball, cycling, volleyball, baseball and walking. In addition, the company also markets the casual footwear under its Cole-Haan subsidiary. Recent product introductions have left the core athletic shoe business and include sports clothing, additional casual shoes, and hiking shoes.
The domestic footwear market encountered four years of stagnation that are just now beginning to end. During that time, Nike adopted a strategic po...