Philip Hampson Knight
“Just Do It”
Submitted on: Tuesday Oct 2 2011
Submitted by: Kakoose Guna
The sports apparel and equipment industry is growing rapidly and is estimated to be worth over $126 billion by the year 2015 according to Global Industry Analysts. This industry has a growing market because people are becoming more health conscious. Thus, Sports apparel and equipment are in demand, which leads to a very highly competitive market. Demand refers to how much of a product or service is desired by consumers (Wise, 2012). Nowadays, even well established brands are forced to tweak and modify their products in order to maintain their market share. More and more consumers are demanding more versatile products with a wide range of functionality. Changing fashion trends, tough competition and more price-conscious shoppers are just a few of the many challenges faced by businesses in this industry. Competitors and Market trend:
As mentioned earlier, the global sportswear market is considered to be highly competitive. The behemoths of the sports apparel and equipment industry are; Nike, Adidas, Reebok and Puma. Adidas emerged in the industry before Nike and now the Adidas Group owns both Reebok and Adidas. Adidas is the largest sportswear manufacturer in Europe and second largest in the world (“Adidas Group History”). On the other hand, Puma is well known for its soccer shoes and formula one and NASCAR clothing. Presently, they distribute products in more than 120 countries (“PUMAs new archive 2007”). Both Adidas Group and Puma originated in Germany. Product innovation remains a focal point in gaining market share in this industry and to accomplish this, these companies are making technological advancements in order to keep up with changing trends in fitness. Product innovation is the creation and introduction of a good or service that is either new or improved on previous goods or services (Wise, 2012). It is expected that women will become a predominant demographic who use sports apparel. Furthermore, the fashion and sporting apparel industry are becoming more cohesive and collaborating to design more products together to meet the needs of changing trends. A trend in culture means any form of behavior that develops among a large population that lasts long (Wise, 2012). Background:
Early on in his life, Phil Knight was into track and field and covered the sports beat for his high school newspaper. In 1964, Knight and his former track coach at the time, Bill Bowerman, invested $500 each in order to start Blue Ribbon Sports, the predecessor to Nike (Oregon Blue Book, 2011). Knight says, “[he] was aware of shoes when running track…American shoes were offshoots of tire companies” (Stanford Magazine, 2012). One can see that Knight had the domain knowledge to enter the sports shoe industry because he was a track runner and knew what shoes worked and what didn’t. Domain knowledge is when you know things pertaining to the business (Wise, 2012). Thirty years ago, American teenagers owned either a pair of Converse All-star shoes or Keds however both Knight and Bowerman identified the pain and felt the design of American running shoes at the time had to improve. Pain means there has to be a problem that has to be solved. The bigger the pain, the faster the adoption (Wise, 2012). While visiting the Onitsuka factory in Kobe, which at the time were thought to be producing Adidas knock-offs, called Tigers, Knight was instantly impressed with the quality and low production costs of the shoe that he made a deal with Onitsuka to distribute them in the United states (Stanford Magazine, 2012). He initially started selling them from the trunk of his station wagon. Knight persevered, convinced that his inexpensive, high-performance shoe could beat the top “sneakers” in the market (Stanford Magazine, 2012). Perseverance is an individual’s ability to continue in the face of...
Bibliography: Antoine, P. Nike’s Boss- Phil Knight. Retrieved October 1, 2012 from http://www.stfrancis.edu/content/ba/ghkickul/stuwebs/bbios/biograph/phil.htm.
Inc. (2012). The Great Leader Series: Phil Knight of Nike. Retrieved October 1, 2012 from http://www.inc.com/30years/articles/phil-knight.html.
Oregon Blue Book (2011). Notable Oregonians: Phil Knight- Innovator, Business Leader. Retrieved October 1, 2012 from http://bluebook.state.or.us/notable/notknight.htm.
Reference for Business. (2012). Philip H. Knight. Retriieved October 1, 2012 from http://www.referenceforbusiness.com/biography/F-L/Knight-Philip-H-1938.html#b.
ReportLinker. (2012). Sport Clothing and Accessories Industry: Market Research Reports, Statistics and Analysis. Retrieved October 1, 2012 from http://www.reportlinker.com/ci02121/Sport-Clothing-and-Accessories.html.
Stanford Magazine. (2012). The Force Behind the Nike Empire. Retrieved October 1, 2012 from http://alumni.stanford.edu/get/page/magazine/article/?article_id=43087.
Wise, S. (Director) (2012, Sept-Dec). Entrepreneurship. Introduction of
Entrepreneurship. Lecture conducted from Ryerson University, Toronto.
Please join StudyMode to read the full document