Nike, the long-time market leader in athletic shoes, apparel, and gear, has been racing into innovation for more than 50 years. Co-founders Phil Knight and Bill Bowerman met at the University of Oregon, where Knight was a student athlete and Bowerman was a veteran coach and trainer. For years, Bowerman had been experimenting with developing homemade running shoes, some of which Knight tested on the track. After Knight graduated, he decided the U.S. market needed an alternative to the high-priced German shoes that many athletes preferred at the time. He formed Blue Ribbon Sports with Bowerman as his partner and became the U.S. distributor for a Japanese sneaker firm, selling shoes from the trunk of his car.

Questions for Discussion

1. How would you describe Nike’s product mix? Why would the CEO talk about editing down opportunities when he’s aiming for aggressive growth

2. What is Nike’s branding strategy, and what are the implications for its investment in athlete endorsements

3. How is Nike using differentiation to distinguish its products in a crowded and competitive marketplace