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Nike: Play by the Rules
“
Play by the rules. But be
ferocious.
”
The
NIKE
“
swoosh
”
embodies
the
spirit
of
the
winged
goddess
who
inspired
the
most
courageous and chivalrous warriors at
the dawn of civilization.
Nike,
originally known as Blue Ribbon Sports, was
founded by University of Oregon track
athlete Phil
Knight
and
his coach Bill
Bowerman
in
1962.
The company
initially
operated
as a
distributor for Japanese shoe maker
Tiger, making most sales at track meets out of
Knight
’
s car.
Many top Oregon runners began wearing
the shoes, and the shoe
’
s
popularity grew quickly. The
company
’
s
first
self-designed
product
was
based
on
Bowerman
’
s
“
waffle
”
design
in
which
the
sole of the shoe was
molded by a waffle iron. A 1965 Warner Brothers
cartoon featured the coyote
trying to
catch up to the road runner in Nike, perhaps an
inspiration for the later use of the name.
The company
’
s
profits grew quickly, and in 1966, its first
retail store was opened.
In 1978, Blue
Ribbon Sports renamed itself to Nike after the
Greek goddess and sponsored
runner
Steve Prefontaine. The sponsorship of athletes
became a key marketing tool for the rapidly
growing company.
Nike
produces
a
wide
range
of
sports
equipment.
Their
first
products
were
track
running
shoes and basketball
shoes. They currently also make jerseys for a wide
range of sports including
track
&
field,
football,
baseball,
tennis,
soccer,
lacrosse,
cricket,
and
golf.
The
most
recent
additions to their line are the Nike
6.0 and Nike SB shoes, designed for skateboarding.
Nike has
recently introduced cricket
shoes, called Air Zoom Yorker, designed to be 30%
lighter than their
competitors
’
.
Nike
positions
its
products
in
such
a
way
as
to
try
to
appeal
to
a
“
youthful
…
materialistic
crowd
”
. However, it also
engineers shoes for discount stores like Wal-Mart
under the
Starter brand.
By
1980, Nike had reached a 50% market share in the
United States athletic shoe market. Its
growth was due largely to
word of mouth advertisement, rather
than television or print adverts.
Nike
’
s first
television commercial ran in 1987. Throughout the
1980s, Nike expanded its product
line
to include many other sports and regions
throughout the world.
Nike
has
more
than
500
Locations
around
the
world
and
offices
located
in
45
countries
outside
the
United
States.
Most
of
the
factories
are
located
in
Asia,
including
China,
Taiwan
(China), India,
Thailand, Vietnam, Pakistan, Philippines,
Malaysia, and Korea. Nike is hesitant to
disclose information about the contract
companies it works with. However, due to harsh
criticism
from
some
organizations
like
,
Nike
has
disclosed
information
about
its
contract
factories in its
Corporate Governance Report. Nike plans to be
carbon neutral by 2011.
Because
Nike
creates
goods
for
a
wide
range
of
sports,
they
have
competition
from
every
sports
and
sports
fashion
brand.
Initially,
Nike
had
no
direct
competitors
because
there
was
no
single
brand
which
could
compete
directly
with
Nike
’
s
range
of
sports
and
non-sports
oriented
gear
until
Reebok
came
along
in
the
1980s.
Reebok
now
has
merchandising
contracts
with
the
National
Football
League
and
the
National
Hockey
League
in
the
United
States,
and
was
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