Shoe Dog: A Memoir by the Creator of Nike

Background
Shoe Dog is a first-person memoir written by Nike co-founder Phil Knight. It was published in
2016. Shoe Dog primarily recounts the events from 1962, the year Knight traveled around the
world as a young man, to 1980, the year Nike went public and Knight became a
multimillionaire. The years in between are comprised of the struggles and challenges Knight
faced as he worked to build the company that would ultimately be known worldwide as Nike.
Shoe Dog is divided into 20 chapters, each one roughly corresponding to one year in Knight’s
life. In addition to the challenges related to building a company, Knight also reflects on the
challenges and triumphs he faced as a son, as a young man searching for his identity, as a
husband, and as a father.
Summary
Chapter 1
In 1962, Phil Knight, a young and ambitious graduate of the University of Oregon, sets out on a
world tour with his friend, Carter. Knight, a track and field runner, is inspired by his coach, Bill
Bowerman, to explore the possibility of importing high-quality, affordable running shoes from
Japan.
Despite having limited funds and a lack of experience in business, Knight is determined to make
his mark in the world. He believes that Japanese shoes, with their lightweight design and
superior craftsmanship, could revolutionize the running industry in the United States.
Knight and Carter initially plan to travel through Asia and Europe, but their plans change when
they arrive in Hawaii and are captivated by the island's beauty. They decide to stay in Hawaii
and work for a while to earn some money before continuing their travels.
Knight takes a job as an accountant for Cornfeld Enterprises, a company that manages several
hotels and resorts in Hawaii. While he finds the work tedious and unfulfilling, he appreciates
the opportunity to learn about business operations and financial management.
Despite his newfound stability in Hawaii, Knight's entrepreneurial spirit remains strong. He
continues to research the Japanese shoe industry and network with potential contacts in the
business world. He is convinced that there is a market for high-quality, affordable running shoes
in the United States, and he is determined to be the one to bring them to market.
In the midst of his work and planning, Knight receives a letter from his father, who offers him a
loan to finance his world tour. Knight is surprised by his father's generosity and accepts the
offer with gratitude. He knows that this opportunity could be his chance to turn his dreams into
reality.
With the support of his family and his own unwavering determination, Knight is ready to
embark on the journey that will lead him to found Nike, one of the world's most iconic athletic
brands.
Chapter 2
1963: Back in Oregon

After completing his business studies at Stanford University, Phil Knight returns to his
hometown of Portland, Oregon. While pursuing his dream of starting a shoe business, he works
as an accountant for Price Waterhouse to support himself.
Knight eagerly awaits the arrival of the first shipment of shoes he had ordered from Onitsuka
Tiger, a Japanese shoe manufacturer. He had met with Onitsuka, the company's founder, during
his travels to Japan and was impressed with their quality and performance.
Knight's enthusiasm for the shoes is tempered by the lack of response from Onitsuka regarding
his order. He struggles to maintain his motivation and doubts the feasibility of his business
venture.
Despite the uncertainties, Knight remains determined to make his mark in the shoe industry. He
continues to work on his business plan and marketing strategies, hoping for a breakthrough.
Meanwhile, Knight receives a letter from his former University of Oregon track coach, Bill
Bowerman, expressing his interest in the shoes. Bowerman, a renowned innovator in running
shoes, recognizes the potential of the Japanese designs.
Knight immediately sends two pairs of the shoes to Bowerman for evaluation. Bowerman is
impressed with the shoes' lightweight construction and traction, but he also identifies areas for
improvement.
This exchange marks the beginning of a fruitful partnership between Knight and Bowerman.
Bowerman's expertise and passion for running shoes would prove invaluable to the
development of Nike's future products.
Knight continues to face challenges in his quest to establish a successful shoe business. He deals
with delays in shipments, communication difficulties with Onitsuka, and the need to balance his
accounting job with his entrepreneurial pursuits.
Despite the obstacles, Knight remains focused on his goal of bringing high-quality, affordable
running shoes to the American market. He is driven by his belief in the power of sports to
change lives, and he is determined to make a difference in the industry.
Chapter 3

Bill Bowerman and Phil Knight

Chapter 3 of Shoe Dog, titled "1964," marks a turning point in the story of Nike. Phil Knight,
having established his business venture in 1963, finally received the first samples of Tiger shoes
from Japan. Eager to share the potential of these shoes with his mentor and running coach, Bill
Bowerman, Knight carefully selects two pairs from the shipment and sends them to
Bowerman's home in Oregon.
Bowerman, a renowned figure in the world of running, is initially skeptical of Knight's idea of
importing Japanese shoes. However, upon examining the Tigers, he is impressed by their quality
and innovation. The shoes are designed with lightweight soles, better traction, and more
flexibility, addressing common complaints from runners.
Enthralled by the potential of these shoes, Bowerman suggests forming a partnership with
Knight to distribute them in the United States. Knight, initially hesitant to relinquish control,
eventually agrees to a 50/50 partnership, with both men investing $500. They name their
company Blue Ribbon Sports, a nod to Bowerman's role as the "blue ribbon" coach of the
Oregon track team.
With this partnership formalized, Knight eagerly places an order for 300 pairs of Tigers, the bulk
of his savings at the time. He also secures financing from his father, who believes in his son's
entrepreneurial spirit. The dream of bringing these revolutionary shoes to American runners is
now a reality.
The birth of Blue Ribbon Sports marks a significant step forward in the journey of Nike. It
represents the culmination of Knight's early efforts and the beginning of a collaboration that
would transform the world of sportswear. Bowerman's expertise and Knight's drive would
prove to be an unstoppable force, setting the stage for Nike's meteoric rise to success.

Chapter 4

Chapter 4 of Shoe Dog, titled "1965," marks a turning point in the early history of Nike as the
company's founder, Phil Knight, faces key decisions that will shape its future. As Blue Ribbon
Sports, the company's original name, continues to grow, Knight grapples with the need to
expand its product range and establish a stronger brand identity.
The chapter opens with Knight's renewed enthusiasm for his business after being inspired by
the success of the Onitsuka Tiger shoes he had been importing. However, he recognizes the
need to offer a wider selection of footwear to cater to a broader customer base. This realization
leads him to seek out new suppliers beyond Onitsuka Tiger, particularly those that could
provide more innovative and differentiated products.
Knight's pursuit of new suppliers takes him to sporting goods shows and trade conventions,
where he encounters a variety of brands and designs. One particular company, Tiger Shoes,
catches his attention due to their unique "Tiger Stripes" pattern on the soles of their shoes.
Knight believes that these stripes could be a valuable asset in differentiating his products and
appealing to runners who seek performance-enhancing features.
Meanwhile, Knight continues to face challenges with Onitsuka Tiger, including communication
issues and quality control problems. He realizes that the growing success of Blue Ribbon Sports
is causing friction with his Japanese partner, who fears losing control over the American
market. This tension leads Knight to explore the possibility of renaming his company to avoid
legal entanglements and establish a more independent identity.
Inspired by the Greek goddess of victory, Nike, Knight decides to adopt this name for his
company. He believes that the name resonates with the spirit of his business and captures the
essence of athletic achievement. This rebranding effort marks a significant step in the evolution
of Nike, signaling its desire to break free from its Japanese roots and forge its own path in the
global sportswear industry.

Chapter 5
In Chapter 5 of Shoe Dog, Phil Knight recounts the events of 1966, a year marked by both
challenges and triumphs for his fledgling company, Blue Ribbon Sports.
Johnson's Enthusiasm
Phil is initially overwhelmed by the enthusiasm of his first employee, Jeff Johnson. Johnson,
who is passionate about running and Blue Ribbon's shoes, constantly writes to Phil with
suggestions and feedback. Phil, still inexperienced in managing employees, finds Johnson's zeal
both helpful and overwhelming.
Customer Feedback and New Designs
Johnson's enthusiasm leads him to actively collect feedback from customers, which proves
valuable in improving Blue Ribbon's shoe designs. Phil recognizes the importance of customer
feedback and begins to incorporate it into the company's product development process.
The First Retail Store
In a bold move, Phil decides to open Blue Ribbon's first retail store in Santa Monica, California.
Despite his initial hesitation, he believes that a physical store will help the company connect
with customers and build brand awareness.

A Trip to Japan
Phil travels to Japan to meet with Onitsuka Tiger's executives and address the increasing
demand for Blue Ribbon shoes. He successfully negotiates a new contract with Onitsuka,
securing a larger supply of shoes to meet the growing demand.
Concerns about Blue Ribbon's Growth
Phil's return to the United States is met with concerns from his financial backers, who worry
that Blue Ribbon is growing too quickly. They fear that the company is taking on too much debt
and could face financial trouble if it cannot keep up with its rapid growth.
The Need for a "Real Job"
Despite the growing success of Blue Ribbon, Phil feels the pressure of managing the company's
finances and operations. He decides to take a "real job" as an accountant at Price Waterhouse,
hoping to gain more experience in business management.
Delbert Hayes and the Importance of Networks
At Price Waterhouse, Phil meets Delbert Hayes, a seasoned accountant who becomes a mentor
and confidant. Hayes teaches Phil valuable lessons about business and finance, and he also
introduces Phil to his network of contacts, which proves beneficial for Blue Ribbon's future
growth.
The Enduring Spirit of Blue Ribbon Sports
Despite the challenges and doubts faced in 1966, Phil remains committed to Blue Ribbon Sports
and his vision for the company's future. He recognizes the importance of customer feedback,
the power of a retail presence, and the value of building strong relationships within the
industry.
Chapter 5 highlights Phil's leadership style, his willingness to learn from others, and his
determination to overcome obstacles in pursuit of his dreams.

Chapter 6
In Chapter 6 of Shoe Dog, Phil Knight recounts the tumultuous events surrounding the launch of
Nike's Cortez shoe, a groundbreaking design that was initially met with disaster but ultimately
became one of the company's most iconic products.
The chapter begins with Knight's excitement over the Cortez, a shoe that he believes will
revolutionize the running industry due to its lightweight design and innovative waffle sole. He
envisions the Cortez becoming a symbol of Nike's commitment to innovation and performance.
However, the Cortez launch is marred by a series of manufacturing defects. The shoes start to
fall apart prematurely, causing blisters and other injuries to runners. Knight and his team
scramble to control the damage, but the negative publicity threatens to tarnish Nike's
reputation.
Amidst the chaos, Knight faces financial pressure from his investors, who are concerned about
the company's dwindling profits and the potential fallout from the Cortez debacle. He
contemplates bankruptcy, but ultimately decides to double down on his belief in the shoe's
potential.
In a desperate attempt to salvage the Cortez, Knight hires Frank Rudy, an aerospace engineer
who has developed a revolutionary cushioning system using pressurized air bags. Rudy's
technology, which becomes known as Air technology, proves to be a game-changer for Nike.
The Air-cushioned Cortez is reintroduced to the market, and it quickly becomes a bestseller,
saving Nike from the brink of collapse.
The chapter concludes with Knight reflecting on the lessons learned from the Cortez crisis. He
emphasizes the importance of quality control, the need to be prepared for setbacks, and the
value of taking risks in pursuit of innovation. He also acknowledges the role of luck in Nike's
success, recognizing that the company could have easily succumbed to the Cortez disaster.
Chapter 6 highlights the high stakes and unpredictable nature of the shoe business. It
demonstrates Knight's resilience and willingness to take calculated risks, even in the face of
adversity. The Cortez saga also underscores the power of innovation and the ability of a single
product to transform a company's fortunes.

Chapter 7
In 1968, Phil Knight is still working as an accountant at Price Waterhouse, but he is increasingly
frustrated with his job and wants to devote more time to Blue Ribbon Sports. He realizes that
he can't do both jobs effectively, so he starts looking for a new position that will allow him to
focus more on his business.
He decides to apply for a teaching job at Portland State University, and he is surprised to find
that he enjoys teaching. He also meets a young woman named Penelope Parks in his accounting
class, and they soon begin dating.
Knight's new job allows him to work more hours at Blue Ribbon Sports, and the company is
starting to see some success. They are selling more shoes than ever before, and they are
starting to attract the attention of larger retailers.
However, Knight is also facing some challenges. He is having trouble keeping up with the
demand for his shoes, and he is worried about the company's cash flow. He is also starting to
feel the pressure of managing a growing business.
Despite the challenges, Knight is excited about the future of Blue Ribbon Sports. He believes
that the company has the potential to be a major player in the shoe industry, and he is
determined to make it a success.
Chapter 8
Chapter 8 of Shoe Dog: A Memoir by the Creator of Nike, titled "1969," delves into the
company's growing momentum and the challenges that come with rapid expansion.
The chapter opens with Blue Ribbon Sports, the precursor to Nike, experiencing a surge in sales.
With revenue projected to reach $300,000 in 1969, Phil Knight, the company's co-founder,
decides to quit his teaching job and focus full-time on the business. He draws an annual salary
of $18,000, marking a significant step forward for the company.
Amidst the growing business, Knight also finds personal happiness when he gets engaged to
Penny Sanders. Their relationship progresses quickly, and they tie the knot soon after.
However, Knight's professional life is far from smooth sailing. Despite a good working
relationship with his Japanese counterparts at Onitsuka Tiger, Phil harbors suspicions about
their activities. He finds their business practices opaque and feels that they are not always
transparent about their intentions.
In an effort to better understand the Japanese business culture, Knight takes a trip to Kobe,
Japan, where he meets Fujimoto, a humble employee of Onitsuka's export department.
Fujimoto shares his story of resilience after a typhoon destroys his home, leaving him with
nothing but his bicycle. Knight, touched by Fujimoto's spirit, sends him $50 to help him buy a
new bicycle.
As Blue Ribbon Sports continues to grow, Knight faces the daunting task of managing a
globalized supply chain. He grapples with the complexities of international trade, cultural
differences, and the need for efficient distribution networks. Despite these challenges, Knight
remains determined to maintain his company's high standards of quality and customer service.
The chapter concludes with Knight's reflections on the challenges and rewards of building a
successful business. He acknowledges that the journey has not been easy, but he finds
satisfaction in the company's growth and the impact it has had on the world of sports and
athletics.

Chapter 9
Chapter 9 of Shoe Dog, titled "1970," delves into a period of significant growth and challenges
for Blue Ribbon Sports, the company that would later become Nike. The chapter highlights the
company's struggles with shipping problems, financial pressures, and a complex relationship
with its Japanese supplier, Onitsuka Tiger.
Shipping Disruptions and Warehouse Chaos
As Blue Ribbon's sales continued to skyrocket, the company faced mounting shipping issues.
Delays, inaccurate order fulfillment, and wrong sizes and models created chaos in the
warehouse and frustrated sales representatives. The company's reliance on Onitsuka Tiger for
manufacturing and logistics made it difficult to address these problems effectively.
Financial Strain and Banking Pressure
Blue Ribbon's rapid growth put a strain on its finances. Despite doubling its revenue every year,
the company's cash flow was hampered by delays in payments from retailers and the need to
constantly invest in inventory and expansion. Banks, wary of the company's aggressive growth
strategy, became increasingly hesitant to provide additional credit, putting further pressure on
Knight and his team.
The Onitsuka Tiger Dilemma
Blue Ribbon's relationship with Onitsuka Tiger, its Japanese supplier, was fraught with tension.
Onitsuka Tiger prioritized orders from its local distributors, leaving Blue Ribbon's shipments on
the back burner. This resulted in stockouts and frustrated customers. Additionally, Phil Knight
discovered that Onitsuka Tiger was negotiating with other potential distributors in the US,
jeopardizing Blue Ribbon's exclusive rights to the Tiger brand.
A Turning Point: The Waffle Trainer
Despite the ongoing challenges, Blue Ribbon achieved a breakthrough with the introduction of
the Waffle Trainer, a revolutionary shoe designed by Bill Bowerman. The Waffle Trainer's
unique outsole pattern provided superior traction and support, quickly gaining popularity
among runners. This success helped Blue Ribbon regain its footing and establish itself as a
leader in innovative running footwear.
Knight's Leadership and Determination
Throughout the challenges of 1970, Phil Knight demonstrated his resilience and determination.
He faced financial pressures, shipping problems, and a complex relationship with Onitsuka
Tiger, yet he remained focused on the company's vision and goals. Knight's leadership and
commitment to innovation laid the foundation for Nike's future success.
Chapter 10
Phil Knight, the co-founder of Nike, recounts the events of 1971, a pivotal year in the company's
history. The chapter opens with Kitami, a representative from Onitsuka Tiger, Nike's Japanese
partner, visiting Portland as part of a tour of the United States to seek new distributors.
Knight, eager to impress Kitami and secure Onitsuka Tiger's continued partnership, goes all out
to entertain him during his stay in Oregon. He takes Kitami on a whirlwind tour of the state,
including a trip to the Oregon coast, a visit to Knight's bank in Portland, and a tour of Blue
Ribbon's offices in Tigard.
During a meeting with Kitami, Knight is surprised and dismayed when Kitami berates him for
slow sales. Feeling threatened by Kitami's aggressive tactics, Knight decides to take matters into
his own hands. While Kitami is using the restroom, Knight discreetly steals some documents
from Kitami's briefcase.
Later, Knight and Woodell, Blue Ribbon's accountant, study the contents of the folder. To their
horror, they discover that Onitsuka Tiger has been secretly contacting other potential
distributors in the United States, putting Blue Ribbon's future at risk.
Knight is devastated by this revelation. He realizes that Onitsuka Tiger is no longer a reliable
partner and that he needs to find a new way to survive and thrive. This chapter marks a turning
point for Blue Ribbon, as Knight begins to chart a new course for the company, one that will
lead to its eventual success as Nike.

Chapter 11
In this concluding chapter, Phil Knight recounts the pivotal moments and key achievements that
propelled Nike from a struggling start-up to a global sportswear powerhouse. He highlights the
company's resilience, innovation, and strategic partnerships that contributed to its meteoric
rise.
The Onitsuka Termination and the Quest for Independence
In 1972, Onitsuka Tiger, Nike's Japanese supplier, abruptly terminates their partnership, leaving
Knight and his team without a source for their shoes. This crisis forces Nike to seek new
manufacturing partners and establish their own design and production capabilities.
The Debut of Nike and the Waffle Trainer
Undeterred by the setback, Nike makes its grand debut at the 1972 Chicago Sporting Goods
Show, showcasing their new line of shoes, including the revolutionary Waffle Trainer. The show
proves to be a resounding success, generating significant orders and establishing Nike as a
serious player in the sportswear market.
The Oregon Project and the Pursuit of Innovation
Knight's unwavering commitment to innovation leads to the establishment of the Oregon
Project, a training program for elite runners based in Eugene, Oregon. This project attracts
world-class athletes, including Steve Prefontaine, who embody the spirit of Nike's brand and
push the boundaries of human performance.
The Legal Battle with Onitsuka and the Triumph of the Swoosh
Onitsuka Tiger initiates a lawsuit against Nike over trademark infringement, challenging the use
of the Nike name and the iconic swoosh logo. Nike countersues, asserting their rights to the
brand and logo. After a prolonged legal battle, Nike emerges victorious, solidifying their identity
and brand recognition.
The Rise of the Air Technology and Global Expansion
Nike's fortunes take a dramatic turn with the introduction of Air technology, a revolutionary
cushioning system developed by Nike engineer Frank Rudy. The success of Air-cushioned shoes
propels Nike's growth, leading to international expansion and partnerships with renowned
athletes like Michael Jordan.
The IPO and Nike's Transformation into a Global Icon
In 1980, Nike goes public, offering shares of the company to the world. The IPO is a resounding
success, making Knight and his early investors incredibly wealthy. Nike's stock soars, and the
company becomes a household name, synonymous with athletic performance and cutting-edge
design.
The Legacy of Nike and Phil Knight's Reflections
Knight concludes the chapter by reflecting on Nike's journey from its humble beginnings to its
status as a global leader in sportswear. He acknowledges the challenges, risks, and sacrifices
that paved the way for the company's success. His story serves as an inspiration for aspiring
entrepreneurs and a testament to the power of innovation, perseverance, and unwavering
belief in one's vision.
Chapter 12
In Chapter 12 of Shoe Dog, titled "1972," Phil Knight recounts the events that led to the
breakdown of Blue Ribbon Sports' relationship with Onitsuka Tiger, their Japanese supplier. As
Blue Ribbon's success in the United States grows, they begin to sell shoes directly to retailers,
bypassing Onitsuka's distribution channels. This decision angers Onitsuka, who feels that Blue
Ribbon is betraying their partnership.
Knight tries to smooth things over with Onitsuka, but his efforts are unsuccessful. Onitsuka cuts
off Blue Ribbon's supply of shoes, leaving them in a precarious situation. Knight and his team
scramble to find new suppliers, but they are unable to match the quality and price of Onitsuka's
shoes.
As a result of the lost supply from Onitsuka, Blue Ribbon's sales plummet. Knight is forced to lay
off employees and make other drastic cuts to keep the company afloat. He realizes that Blue
Ribbon needs to become more independent and develop its own line of shoes.
In the midst of this crisis, Knight receives a visit from Kitami, Onitsuka's head of international
sales. Kitami is furious about Blue Ribbon's direct sales and demands that they stop
immediately. He also threatens to sue Blue Ribbon for breach of contract.
Knight tries to reason with Kitami, but Kitami is adamant. He leaves Blue Ribbon's headquarters,
vowing to take legal action. Knight is left feeling defeated and uncertain about the future of
Blue Ribbon.

Chapter 13
In Chapter 13 of Shoe Dog, Phil Knight recounts the legal battle between Blue Ribbon Sports
and Onitsuka Tiger. The conflict began when Onitsuka Tiger sued Blue Ribbon for breach of
contract, alleging that Knight had violated their agreement by selling shoes under the Nike
brand. Blue Ribbon countersued, alleging that Onitsuka Tiger had interfered with their business
and misappropriated their trademarks.
The trial lasted for several weeks, and both sides presented their cases before a jury. Blue
Ribbon's legal team argued that Knight had the right to use the Nike brand because he had
created it. They also argued that Onitsuka Tiger had breached their own contract by failing to
meet their quality control standards.
Onitsuka Tiger's legal team argued that Knight had no right to use the Nike brand because he
had agreed to sell Onitsuka Tiger shoes exclusively. They also argued that Blue Ribbon had
failed to meet their financial obligations to Onitsuka Tiger.
In the end, the jury found in favor of Blue Ribbon on all counts. The judge awarded Blue Ribbon
$400,000 in damages, and Onitsuka Tiger was ordered to cease and desist from using the Nike
brand.
The legal victory was a major turning point for Blue Ribbon Sports. It gave Knight and his team
the freedom to operate independently and to pursue their own vision for the company. It also
helped to solidify the Nike brand in the minds of consumers.
In addition to the legal battle, Chapter 13 also covers other important developments at Blue
Ribbon Sports in 1974. For example, Knight hired a new lawyer named Rob Strasser, who would
play a key role in the company's future growth. Knight also began to explore new
manufacturing options outside of Japan, in order to reduce the company's reliance on a single
supplier.
Overall, Chapter 13 is a pivotal chapter in the Shoe Dog story. It marks the end of Blue Ribbon
Sports' partnership with Onitsuka Tiger and the beginning of Nike's own independent journey.
Chapter 13 is a reminder that building a successful business requires perseverance, vision, and a
willingness to fight for what you believe in.

Chapter 14
Chapter 14 of Shoe Dog chronicles the difficult year of 1975 for Nike. The company is growing
rapidly, but its finances are stretched thin. Knight is forced to make difficult decisions about
how to allocate resources and manage cash flow.
One of the biggest challenges facing Nike in 1975 is its relationship with Nissho, its Japanese
trading partner. Nissho is providing Nike with a significant amount of credit, but Knight is
worried about becoming too dependent on them. He also fears that Nissho may not be able to
keep up with Nike's growing demand.
To reduce Nike's reliance on Nissho, Knight decides to start assembling shoes in the United
States. He purchases a factory in New England and begins shipping semi-finished shoes from
Puerto Rico to be finished at the factory. This allows Nike to have more control over its
production and reduce its reliance on overseas suppliers.
However, the new production process is not without its challenges. The factory in New England
is not fully equipped to handle the volume of shoes that Nike needs to produce. This leads to
quality control problems and delays in shipping.
In addition to the production challenges, Nike is also facing financial difficulties. The company is
spending more money than it is taking in. Knight is forced to borrow money from friends and
family to keep the company afloat.
Despite the challenges, Nike continues to grow in 1975. The company signs new distribution
deals and expands its product line. Knight also begins to focus on marketing and branding,
which helps to increase Nike's visibility and appeal to consumers.
Chapter 14 is a pivotal chapter in Shoe Dog, as it shows how Nike overcame its early challenges
and laid the foundation for its future success. Knight's willingness to take risks and make
difficult decisions helped Nike to survive and thrive in a competitive industry.

Chapter 15
Chapter 15 of Shoe Dog chronicles Nike's continued growth and success in 1976. The company
expands its product line, signs more athletes to endorsement deals, and enters the Olympic
market. However, the chapter also explores some of the challenges that Nike faces as it
becomes a larger and more complex organization.
One of the biggest challenges facing Nike in 1976 is the issue of going public. Knight is reluctant
to take the company public, fearing that it will lose its independence and culture. However, he
also recognizes that going public could provide Nike with the capital it needs to grow even
faster.
In the end, Knight decides to keep Nike private, but he does make some changes to the
company's structure and management team. He hires more experienced executives and creates
new departments to handle areas such as finance, marketing, and international sales.
Nike also faces some challenges in its relationship with its Japanese partners. Onitsuka Tiger is
struggling financially, and Knight is concerned that the company may not be able to continue to
supply Nike with high-quality shoes. Knight decides to start manufacturing some of Nike's shoes
in the United States, which gives the company more control over its supply chain.
Despite these challenges, Nike continues to grow and succeed in 1976. The company signs
three Olympians to endorsement deals, and its shoes are worn by top athletes in all major
sports. Nike also launches its first international advertising campaign, which helps to build the
company's brand awareness around the world.

Chapter 16
Chapter 16 of Shoe Dog, titled "1976," chronicles Nike's continued growth and success, as well
as some of the challenges the company faced during that year.
The chapter begins with Knight reflecting on the death of Steve Prefontaine, a young Oregon
runner who was one of Nike's biggest endorsers. Prefontaine's death was a major blow to the
company, but it also served as a rallying cry for Nike employees to continue working hard and
building the company into a global powerhouse.
One of the highlights of 1976 for Nike was the success of the Waffle Trainer, which had become
a popular shoe among runners and athletes of all kinds. The Waffle Trainer was one of the first
shoes to feature Nike's innovative waffle outsole, which provided superior traction and support.
The shoe's success helped to solidify Nike's reputation as a leader in the sportswear industry.
Another major development for Nike in 1976 was the company's expansion into new markets.
Nike began selling its shoes in Europe and Asia, and it also began to develop new products for
other sports, such as basketball and tennis. This expansion helped Nike to reach a wider
audience and grow its business even further.
However, Nike also faced some challenges in 1976. One challenge was the company's ongoing
legal battle with Onitsuka Tiger, Nike's former Japanese supplier. The two companies were
fighting over the rights to the "Swoosh" logo, and the legal battle was costly and time-
consuming.
Another challenge for Nike in 1976 was the company's supply chain. Nike was still relying on a
network of small factories in Japan to produce its shoes, and this made it difficult to control
quality and meet demand. Knight knew that Nike needed to find a way to produce its shoes
more efficiently and cost-effectively.
Despite these challenges, Nike ended 1976 on a high note. The company's sales were up
significantly, and it was well on its way to becoming one of the most successful sportswear
brands in the world.
Overall, Chapter 16 of Shoe Dog provides a snapshot of Nike's continued growth and success in
1976. The chapter also highlights some of the challenges that the company faced during that
year, such as the legal battle with Onitsuka Tiger and the challenges of managing its supply
chain. However, Knight and his team are determined to overcome these challenges and build
Nike into one of the most successful sportswear brands in the world.

Chapter 17
In Chapter 17 of Shoe Dog, Phil Knight recounts the year 1978, a time when Nike was facing
both challenges and opportunities. On the one hand, the company was embroiled in a legal
battle with the U.S. government over its import practices. On the other hand, Nike's sales were
soaring, and the company was poised for even greater growth.
In the midst of this uncertain environment, Knight made two key decisions that would have a
profound impact on Nike's future:
1. To launch a clothing line. Knight believed that Nike needed to diversify its product
offerings in order to be successful in the long term. He also saw an opportunity to
capitalize on the growing popularity of athletic apparel.
2. To introduce the Tailwind, a new shoe with a revolutionary air cushioning system. The
Tailwind was Nike's most technologically advanced shoe to date, and Knight was
confident that it would be a hit with consumers.
Knight's decision to launch a clothing line was met with mixed reactions from his team. Some
people believed that Nike should focus on its core competency of making shoes. Others argued
that a clothing line would help Nike to establish itself as a more complete sportswear brand.
In the end, Knight decided to go ahead with his plan. He hired a new design team and began to
develop a line of Nike apparel that would be both stylish and functional. The new clothing line
was a success, and it helped Nike to expand its reach beyond the running market.
The Tailwind was also a success, and it helped to solidify Nike's reputation as a leader in
innovative footwear technology. The shoe was popular among runners and athletes of all kinds,
and it helped to fuel Nike's growth in the 1980s.
Chapter 17 of Shoe Dog is a significant chapter in the Nike story. It marks the beginning of
Nike's diversification into new product categories and its commitment to innovation. These two
key factors would play a major role in Nike's rise to become one of the world's most successful
and iconic brands.
In addition to the above, here are some specific details from Chapter 17 that are worth noting:
 Knight's decision to launch a clothing line was inspired by Adidas, which had a successful
apparel business in addition to its shoes.
  Nike's first clothing line featured a simple and understated design. Knight wanted the
clothes to be functional and comfortable, but he also wanted them to have a certain
elegance.
 The Tailwind was the brainchild of Frank Rudy, an aerospace engineer who had
developed a revolutionary air cushioning system. Rudy approached Knight with his idea,
and Knight was immediately intrigued.
 Nike spent a significant amount of money on marketing the Tailwind. The company
wanted to make sure that consumers were aware of the shoe's innovative features and
its potential to improve performance.
 The Tailwind was a critical and commercial success. It was praised by runners for its
comfort and performance, and it helped to establish Nike as a leader in running
footwear.

Chapter 18
In 1979, Nike faces a major challenge when the US Customs Service seizes a shipment of Nike
shoes from Taiwan. The Customs Service claims that the shoes are counterfeit, and they
threaten to impound Nike's entire inventory.
Knight was devastated. He knows that if Nike loses the case, the company could be ruined. He
immediately begins to fight back, hiring lawyers and lobbyists to try to persuade the Customs
Service to release the shoes.
Knight also travels to Washington, D.C., to meet with politicians and bureaucrats. He uses his
charm and persuasiveness to win over support for Nike's case.
After months of intense lobbying, Knight finally succeeds in getting the Customs Service to back
down. The shoes are released, and Nike is able to avoid a major financial disaster.
The Customs case was a turning point for Nike. It showed Knight that he was willing to fight for
what he believed in, even when the odds were stacked against him. It also showed the world
that Nike was a serious company that was here to stay.
Detailed summary of key events:
 Nike's shipment of shoes from Taiwan is seized by the US Customs Service.
 Knight hires lawyers and lobbyists to fight the seizure.
  Knight travels to Washington, D.C., to meet with politicians and bureaucrats.
 After months of lobbying, Knight succeeds in getting the Customs Service to release the
shoes.
Implications of the Customs case:
 Nike avoids a major financial disaster.
 Knight shows his willingness to fight for what he believes in.
 The world sees Nike as a serious company that is here to stay.
Chapter 18 is a powerful example of Knight's entrepreneurial spirit and his willingness to do
whatever it takes to succeed. It is also a reminder that even the biggest challenges can be
overcome with determination and perseverance.

Chapter 19
Chapter 19 of Shoe Dog chronicles Nike's fight against the United States government over the
American Selling Price (ASP) system. The ASP system was a method of calculating import duties
that discriminated against foreign-made goods. Nike argued that the ASP system was unfair and
was putting them at a competitive disadvantage.
Knight and his team mounted a vigorous campaign to fight the ASP system. They lobbied
politicians, met with government officials, and even filed a lawsuit against the Treasury
Department. They also launched a public relations campaign to raise awareness of the issue
and generate support for their cause.
The government was unmoved by Nike's objections. They insisted that the ASP system was a
necessary tool to protect American jobs. Nike was facing a $25 million import duty bill, which
would have been devastating for the company.
In a desperate attempt to save Nike, Knight and his team devised a risky plan. They released a
new shoe called the "One Line", which was priced significantly lower than their other shoes.
They then argued that the One Line should be used as the reference price for calculating import
duties. This would have significantly reduced the amount of duty that Nike owed.
The government was furious with Nike's plan. They accused Nike of trying to evade their legal
obligations. However, Nike was determined to fight back. They launched a TV ad campaign that
accused the government of trying to put a small American company out of business.
The government eventually backed down and agreed to negotiate with Nike. They reached a
settlement that reduced Nike's import duty bill by millions of dollars. Nike had won a major
victory, but the battle had been costly.
Chapter 19 of Shoe Dog is a fascinating chapter that highlights Nike's early struggles and its
willingness to fight for what it believes in. It is also a reminder of the importance of fighting for
fairness and justice, even when the odds are stacked against you.
In addition to the above, here are some specific takeaways from Chapter 19:
 The importance of perseverance and determination: Nike faced numerous challenges,
but they never gave up on their dream.
 The power of public relations: Nike used the media to raise awareness of the ASP issue
and generate support for their cause.
 The value of innovation: Nike's One Line shoe was a clever way to circumvent the ASP
system.
 The importance of fighting for what you believe in: Nike was willing to go toe-to-toe
with the government to protect their business.
Chapter 19 is a reminder that even the biggest companies can be vulnerable to unfair
government policies. However, it also shows that with perseverance and determination, even
the smallest companies can stand up for what they believe in and achieve victory.

Chapter 20
The final chapter of Shoe Dog begins with Phil Knight facing a daunting challenge: the US
Customs Service has raised the import duty on Nike shoes by 40%. This would make Nike's
shoes much more expensive than its competitors, and it could potentially cripple the company.
Knight refuses to give up without a fight. He deploys several strategies to combat the US
Customs Service, including:
 Creating a new shoe and pricing it very low, so that "officials would have to use this
'competitor' shoe as a new reference point in deciding our import duty" (344).
 Airing a commercial that portrays Nike's fight against the US government.
 Hiring a high-powered law firm to represent Nike in court.
Knight's efforts ultimately pay off, and the US Customs Service agrees to lower the import duty
on Nike shoes. However, the battle has taken a toll on Knight, both physically and emotionally.
He reflects on the challenges he has faced over the years, and he acknowledges that he has
made mistakes along the way.
Despite the setbacks, Knight is proud of what he has accomplished. He has built Nike into a
global powerhouse, and he has helped to revolutionize the sportswear industry. He concludes
the book by saying that he is "more excited about the future than ever before"
Additional details from Chapter 20:
 Knight describes how he and his team worked tirelessly to develop the Air technology,
which would eventually become one of Nike's most iconic innovations.
 He also recounts the story of how Nike signed Michael Jordan to an endorsement deal,
which would prove to be one of the most successful marketing partnerships in history.
 Knight reflects on the importance of company culture and how he has strived to create a
workplace where employees feel valued and respected.
 He also discusses the challenges of leading a growing company and the importance of
delegating tasks and building a strong team.
Overall, Chapter 20 is a fitting conclusion to Shoe Dog. It is a story of perseverance, innovation,
and the pursuit of excellence. It is also a story about the challenges and rewards of building a
successful business.

Takeaway 1 – Good managers don’t micromanage.

Micromanagement ends up alienating and demotivating a workforce. It’s much better to let
people do their jobs and surprise you with their results. This makes them happy and you happy
when their results come in.

Takeaway 2 – Having the right people around you is essential

Knight primarily worked with people he trusted. This had two benefits. Firstly, he could allow
them to get on with the job in the knowledge that they would do it to the best of their ability.

Secondly, he could trust them. He knew they would not try and stab him in the back and work
against him. As he had developed relationships with a lot of them beforehand, they bought into
his philosophy and were more loyal.

A company is only as good as the employees that work for it. If the employees don’t buy into
the ethos of the company and believe in its cause, it’s going to struggle.

This is especially true at the top of the company where tough decisions have to be made. If
there is a culture of trust and acknowledgement that you can say what needs to be said to each
other, the company will succeed.

Takeaway 3 – Go for broke when you’re young

One of the biggest takeaways I took from Shoe Dog was that if you have a big idea when you’re
young, you should go full steam ahead with it.
Knight had dreamt up his business idea while he was at university. After going on a round-the-
world trip and going to Japan to specifically ask Onitsuka if he could partner with them and
import their shoes, he put his idea into practice.

He could not have foreseen what his business would eventually become. He didn’t start with
the intention of creating his own products, just importing Onitsuka’s, but that’s what he ended
up doing.

It would have been easy for him to dismiss his dream and take a safe job. He did actually do
this, he worked as an accountant for a while, but this was while he was going ahead with his
dream job too.

When you’re young you have a lot of time to make mistakes.