Survivors of Depression recall lessons learned (The Muskegon Chronicle)

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Fairbanks. Knight (Phil Knight) in 1964 to 500 U.S. dollars created the Nike company, undreamed of today will become the world's largest sports shoe brand. This paper will be opened Nike U.S. grow up, the mystery, with special focus on large drums during the nike max tn 90 key - new product development strategy.The creation of the early: Age 60-70Mentioned Nike's history, must be retroactive to 1958, when the founder of Fairbanks. Knight is also just a OR (Oregon) State University track and field team players, often in practice, to the coach Bowerman (Bowerman) complained that the United States has never produced a pair of really good sports shoes. Knight majoring in Accounting, returned home after graduation teaching at Portland (Portland). In 1964, Knight and his coach Bowerman 500 U.S. dollars of the funding, set up a sports shoe company named Nike, derived from the Greek, Yu "victory" means.Companies start early, Knight to make use of its relations in the sports sector, and from the shuttle at all track and field sports field, warn that sales of his running shoes. At that time, the products are purchased from Japan, he often consider the design of sports shoes, the United States will certainly potential. The early 70s, Knight began to implement the concept of self-designed shoes, but after careful study of an investigation and found that market demand is sufficient to support him set up their own production lines. However, finally decided to use Japan's production experience, Knight in 1972 and Japan signed the first contract, the formal production of the United States completely designed Nike sports shoes.The ensuing years, the yen continued to appreciate, rising labor costs, making the production of shoes in Japan, the price increase. At this point, Nike has a stable foundation has accumulated experience in overseas production, it will reach more countries stretching other manufacturers. For lower production costs, Nike in 1975, the Japanese production line will be transferred to the relatively low human cost of Korea and Taiwan. Costs dropped, so Nike has more abundant resources to engage in R & D and marketing activities.Nike from low labor cost country open up OEM manufacturers, the industry can be called at that time a revolutionary innovation. Know very well that the production of Nike shoes must be injected into the labor-intensive, thus seeking to lower labor costs of the OEM manufacturers inevitable, and there is no room space. Nevertheless, overseas manufacturing is still the risk of it because of distance and cultural gap between different countries, resulting in improved quality control difficult. Therefore, Nike the next large-scale orders for foundry manufacturers often have to go through a very careful evaluation process to ensure that the finished products can meet the quality standards of Nike. During this period, Nike's strategy to focus our attention entirely focused on:Set up the best mode of operation of overseas productionOEM manufacturer for the new design and styleMaintenance of quality standardsFacing difficulties with trying to ZTE: 80sThe early 80s, Nike Daihatsu leasing, and continue to play an American professional sports shoes manufacturer's role, but in the U.S. who do not own any of its own production factory. Shortly thereafter, the number one competitor Reebok (Reebok) long after the confrontation and to. Founded in 1981 by founder and CEO Paul. Filmon (Paul Fireman) led to a dark horse posture, launched a design momentum of strong sports nike max tn, successfully swept through part of the market. To the 80s, the Reebok in the fierce competition, and Nike has been able to rival. In 1987, Reebok further to 991 million U.S. dollars of sales, 30% of the share, in one fell swoop on sports shoe market leader in the world, Nike was 597 million U.S. dollars and 18% of the share of the rear.Nike and Reebok's War of the Worlds, the problem with the opportunity to point entirely in the target market-oriented and design of the ever-changing nature. In other words, that is, young people (adolescents, young adults) have been purchased are not only sport shoes, as well as representatives of their own shoes "fashion sense." Two shoe giants have realized, such as to expand the size of the market, it must be the original concept of professional sport shoes, transfer to a more broad, "the pursuit of fashion," the youth and young adult market. Reebok hole Alexa advantage and take the lead in this piece of gold into the market to superior products and aggressive PR campaign full of Nike giving hit. Reebok CEO has publicly criticized the Filmon Nike: "Knight is just a shoe from it, the old thought he was a great sport athletes." Knight is rustic light response: "I hate Reebok because of its fundamental research and development system is a counterfeit machine."Provocative in order to counter Reebok, Nike faced up to a huge amount of betting funds in the new product development design, the most popular classic products at the end of the 80's are "gas Shoes" (The Nike Air Shoe). Critic John. Dr Lang (John Horan) in the United States special issue on the sports industry, gas shoes for Nike, made his views: "In fact it is a simple, easy to understand the shoe-making technology, will only air into the soles, that is, form a flexible insole, so just. " nike max tn shoes gas until the early 90s it was formally listed and have received an unprecedented success. So that the 80's are facing the dilemma with trying to Nike ZTE age, period, Nike has suffered in the market against fierce competition, but also from the established design of future new product development strategy melody.Climbing on the peak: 90'sNike shoes listed on massive gas, spared no expense to millions of dollars to NBA superstar Michael invited. Jordan (Michael Jordon) Product spokesmen for engaging in the marketing campaign, a record of the history of sports sponsorship supplies high price first case,world. Nike ads are the gas demands of shoes and Jordan's image and nearly bundled basketball skills. Since then, Nike in the market gradually recovered lost, Reebok, compelled by the situation, panic launched the "shoe bomb jump" (Reebok Pump Shoe) buckled down to a popular NBA star II. O'Neal (Shaquille O ' Neal) as spokesmen lost pity. At this time Nike's market share in 1989 from 25% in 1990 rose over 28 percent, Reebok, from 24% to 21%. The surprisingly successful back operation, so that Nike had a deep sense that marketing is the most powerful brand of magic weapon, which in the ensuing few years, Nike continues to invest in this area, such as: Nike in 1995 The sports marketing (Sports Marketing) cost that is as high as one billion U.S. dollars, Reebok close to 400 million U.S. dollars