How Phil Knight Turned Blue Ribbon Sports into Nike
Phil Knight’s journey to Nike started while he was at Stanford Business School. For a small-business class assignment, he wrote a paper with a bold hypothesis: Japanese running shoes could outcompete German brands in the U.S.
Right after graduation, he traveled to Kobe, Japan, and struck a deal with Onitsuka Tiger (now ASICS) to import their shoes to the U.S. With a modest loan from his father, he bought inventory and began selling shoes, not from a store, but from the trunk of his car, driving to track meets across the Pacific Northwest.
Meanwhile, his former coach, Bill Bowerman, joined him as a partner. Bowerman was an innovator, constantly tinkering with new shoe designs to help athletes perform better.
From Blue Ribbon to Nike
It was 1964 when Knight and Bowerman formally founded their company as Blue Ribbon Sports (BRS). They were initially just a distributor, selling Onitsuka Tiger shoes, but by the late 1960s, Knight saw a bigger opportunity: creating their own shoe brand. A key conflict arose with Onitsuka when Knight discovered that Onitsuka was secretly meeting with other potential U.S. distributors, despite the existing exclusive distribution agreement. Fearing termination of supply, Knight and Bowerman began designing their own line of shoes.
In 1971, Blue Ribbon Sports was rebranded as Nike, named after the Greek goddess of victory. That same year, they commissioned a logo, the now-iconic “Swoosh” designed by a Portland State University student, Carolyn Davidson, who accepted just US$35 for her work.
Innovating for Performance
One of Nike’s earliest breakthroughs came from Bowerman’s experimentation. He famously poured rubber into his wife’s waffle iron to create a new, lighter, and grippier sole.
This “waffle” sole innovation became a defining feature of Nike running shoes, giving them a performance edge.
Knight and Bowerman continued to grow their business smartly:
Knight kept hitting up track meets, forging relationships with runners and coaches to sell their shoes.
Their first real hire was Jeff Johnson, who joined as a full-time salesman. In less than a year, Johnson sold thousands of pairs by going directly to athletic communities.
By 1969, the business was producing serious revenue, and Knight made the leap to working full-time on the company.
Brand Breakthroughs
Phil Knight understood the power of brand and athlete partnerships. He helped sign Michael Jordan in the 1980s, a move that would change Nike’s trajectory.
Under his leadership, Nike also launched its iconic slogan, “Just Do It”, which became synonymous with motivation, performance, and ambition. Knight's foundational vision of performance and perseverance was very much the inspiration for the one of the world's most successful slogans.
Overcoming Adversity
Supply Chain Risk: Leaving Onitsuka meant Nike had to figure out its own manufacturing, a big risk that paid off.
Brand Building: Transforming from a thin-margin distributor to a full-fledged brand required both bold design bets and smart marketing.
Financial Strain: As they scaled, Knight had to balance cash flow, manufacturing costs, and growth, all while keeping the brand lean.
Key Lessons from Phil Knight’s Journey
Start Small, Think Big: Selling shoes from a car trunk isn’t glamorous, but it builds grit, relationships, and real market insight.
Leverage Unique Partnerships: Knight’s coach, Bowerman, was more than a mentor; he was a technical co-founder, contributing crucial product innovation.
Innovate Relentlessly: The waffle sole is a perfect example; experimenting with everyday tools can produce game-changing product features.
Build a Brand, Not Just a Product: Nike created an emotional connection, not just functional shoes, and that drove its long-term growth.
Be Willing to Pivot: When the original distributor model no longer worked, Knight didn’t hesitate to build Nike’s own identity.
Today, Nike is one of the most recognizable and valuable sportswear brands in the world. From humble beginnings, a car trunk and a bold idea, Phil Knight helped build a legacy that spans apparel, footwear, and global influence. His story is a powerful reminder that entrepreneurial vision + relentless execution can build something truly iconic.
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