SHOE DOG – BOOK SUMMARY

“Shoe Dog” is a memoir by Phil Knight, the co-founder of Nike. The book chronicles Knight’s journey from his humble beginnings as a young entrepreneur selling Japanese running shoes out of the trunk of his car to building Nike into one of the world’s most iconic and successful brands. Throughout the book, Knight shares the challenges, triumphs, and lessons he learned along the way, including navigating business obstacles, dealing with financial struggles, and overcoming personal doubts. “Shoe Dog” offers valuable insights into the entrepreneurial spirit, the power of perseverance, and the importance of chasing one’s dreams.

CHAPTER 1: 1962

In this chapter, Phil talks about his plan to embark on a world tour in 1962. He needed money for this adventure, and he expected his father to oppose the idea. However, to his surprise, his father agreed. Phil and his friend Carter headed to Hawaii for the start of their journey, but they were so captivated by the stunning beaches that they decided to stay and work there instead. Phil found a job as an accountant at Cornfeld while in Hawaii. Eventually, he left Hawaii to pursue his dream of traveling the world.

CHAPTER 2: 1963

After Phil’s world trip, he came back to Oregon. During his travels, he had requested some samples from Japanese businessmen, and after his father sent them $50, he eagerly awaited the arrival of the shoes. Meanwhile, he started working at an accounting firm. However, it wasn’t a particularly exciting year for Phil, and he found himself wondering if the excitement of his travels was behind him. His job in accounting didn’t provide the same fulfillment as his adventures abroad, leaving him nostalgic for the amazing experiences he had in different countries.

CHAPTER 3: 1964

Phil chose to share the samples with his coach, Bowerman, who was an expert in shoes. Despite feeling nervous about Bowerman’s reaction, Phil was relieved when Bowerman not only approved of the shoes but also proposed a 50/50 partnership. Phil agreed to the partnership, but Bowerman’s lawyer altered the terms, resulting in Phil holding 49% of the company. Phil wasted no time and quickly reached out to the Japanese to secure exclusive distribution rights for the shoes in the western USA. He also placed an order for 300 pairs of shoes, marking the beginning of their venture together.

CHAPTER 4: 1965

Phil’s business, Blue Ribbon, started strong as he began selling shoes. Despite struggling to sell encyclopedias and funds in his previous jobs, Phil found success in selling shoes because he believed in running and the products he offered. In his first year, he generated $8000 in sales, doubling it to $16,000 the following year. Phil’s ability to consistently repay loans and order more shoes fueled the company’s growth. However, as the company expanded rapidly and uncertainties loomed over the future, Phil returned to working as an accountant in a firm.

CHAPTER 5: 1966

In this chapter, Phil talks about his employee, Johnson, who tirelessly promoted Blue Ribbon to everyone he knew. Despite Phil sometimes ignoring Johnson’s constant messages, Johnson’s enthusiasm never waned. He also took the initiative to gather customer feedback and create new designs to enhance the appeal of their product. Meanwhile, the business continued to grow, culminating in the opening of its first retail store in Santa Monica. However, Phil found himself needing to return to Japan to convince them of his capability to handle their workload. Feeling desperate to win them over, he stretched the truth by claiming to have offices not only on the West Coast but also on the East Coast. Eventually, after signing a three-year contract, Phil returned home triumphant.

CHAPTER 6: 1967

Chaos erupted when Johnson found out about Phil’s deception. Phil then expected Johnson to establish an office on the East Coast immediately. After a bit of negotiation, Johnson’s salary was bumped up by $50, and he headed to the East Coast. At the urging of Bowerman, Phil hired two more employees to keep the business running smoothly. Around this time, Bowerman also collaborated with the Japanese to develop a new shoe that would be the perfect gift for athletes. They named the shoe Aztec, but due to a potential lawsuit from Adidas, who had a similar shoe named Aztea Gold, Phil, and Bowerman decided to change the name to Cortez.

CHAPTER 7: 1968

Phil kept his job as an accountant at Prize Waterhouse, but he felt unfulfilled because he wanted to dedicate more time to his company, which meant everything to him. Although Blue Ribbon was doing well, it wasn’t making enough money to pay him a salary yet. So, he made the tough decision to quit his job, hoping to find something that wouldn’t demand too much time but could still cover his expenses. That’s when he started working as an Assistant Professor at Portland State University.

CHAPTER 8: 1969

By 1969, Blue Ribbon was taking off. After hitting $150,000 in sales in 1968, they were on track to reach $300,000 in 1969. This success meant that the business could afford to pay its co-founder, Phil. So, he quit his job and dove into working full-time, earning $18,000 a year. Around this time, Phil also got married, which added the challenge of balancing his business and personal life. He found it intriguing that while he had a good relationship with his counterparts in Japan, he couldn’t shake off his suspicion about their actions, which often puzzled him. In Japan, it was hard to tell if someone was genuinely a partner or secretly competing against you.

CHAPTER 9: 1970

Phil made another trip to Japan to meet with the executives at Onitsuka. Despite feeling nervous, he was greatly relieved when they announced that his contract would be extended for another 3 years. Onitsuka’s sales had reached an impressive $22 million, with a significant portion coming from the US market. Phil hoped for a 5-year extension but was denied. This decision, coupled with the realization that the Japanese prioritized their local customers over foreign ones, left Phil feeling unsettled. It was a frustrating situation, but Phil and his company were essentially at the mercy of the Japanese executives.

CHAPTER 10: 1971

Phil recounts his rollercoaster experiences with his Japanese counterpart, Mr. Kitami. In a daring move, Phil swiped a folder from Kitami during a meeting and discovered that Kitami was in contact with 18 other athletic distributors in the US, posing a serious threat to Blue Ribbon’s business. Kitami even hinted at Onitsuka taking over Blue Ribbon, with an implied threat of termination if Phil didn’t comply. Matters worsened when banks refused to extend more credit to Blue Ribbon, pushing them to the brink of closure. In a last-ditch effort to save the company, Phil struck a deal with another company and rebranded as ‘Nike’, after the Greek Goddess of Victory.

CHAPTER 11: 1972

Phil and his team were all set for their big show in Chicago, knowing that their success hinged on how well they performed. They anxiously awaited the arrival of the Nike shoes, but when they finally arrived, they were deeply disappointed. The shoes were not what they expected based on the samples they had seen. However, with no time to spare, they decided to go ahead and persuade the salesmen that the shoes were still good. Despite this setback, they managed to keep their heads above water. However, trouble brewed when Onitsuka discovered that Phil had deceived them, leading to their relationship being severed.

CHAPTER 12: 1973

At this point, Blue Ribbon understood the importance of investing in celebrity endorsements to promote Nike. With fierce competition from numerous brands, they faced steep costs and the challenge of persuading athletes that their shoes were worth it. Fortunately, many athletes, including tennis players, were already choosing Nike, signaling success for the company. They even secured the endorsement of Prefontaine, known as Pre, a national superstar. However, despite these efforts and achieving impressive sales of $3.2 million, Blue Ribbon experienced its first loss.

CHAPTER 13: 1974

This chapter recounts the lawsuit filed by Onitsuka against Blue Ribbon, which prompted Blue Ribbon to counter-sue Onitsuka in the US. Phil attempted to negotiate a settlement, asking for $800,000 in damages, but his offer was turned down. The trial proceeded with lawyers from both sides questioning witnesses. Phil took the stand but struggled under the pressure despite his preparation. Bowerman, Woodell, and Johnson were also questioned. However, the testimony of Iwano, Mr. Kitami’s assistant, proved crucial. In the end, much to the relief of Phil and his team, Blue Ribbon emerged victorious in the case.

CHAPTER 14: 1975

Phil recounts how he diligently managed the company’s finances to the best of his abilities. With a credit line of $1 million from the bank and Nissho, he made it a priority to pay Nissho first to avoid any potential issues. Despite pressure to slow down, Phil remained steadfast in his approach, often emptying their cash reserves on payday. While this might have seemed risky, he genuinely believed in the high demand for their products. The year 1975 brought a significant blow to Blue Ribbon, both emotionally and financially, with the tragic death of Pre. Pre, a vibrant athlete at the age of 24, passed away in an accident, leaving a profound impact on the company.

CHAPTER 15: 1976

At this point, Phil started pondering whether it was wise to take Nike public. He disliked the idea of having to answer to shareholders and found himself torn whenever the topic arose with his colleagues. Meanwhile, Bowerman decided to step back from the company following Pre’s death. Phil tried to convince him to stay, but Bowerman was deeply affected. As a compromise, Bowerman kept a small percentage of shares and sold the rest to Phil at a reduced price. The year 1976 proved to be a significant one for Nike as they expanded as much as possible. Additionally, three Olympians were seen wearing Nike shoes, with rumors circulating that they were even better than Adidas!

CHAPTER 16: 1977

In 1977, Blue Ribbon experienced significant developments. They enlisted the help of Mr. Rudy, an eccentric individual who believed air soles were the future of the shoe industry. This brought an exciting new dimension to their work. Additionally, they started signing basketball players to boost sales and received endorsements from Hollywood. Nike shoes began appearing in various movies, such as the Incredible Hulk, leading to a surge in sales and furthering their success.

CHAPTER 17: 1978

Despite facing a hefty $25 million battle with the Feds, Blue Ribbon was still performing well. Sales had reached $140 million, indicating a promising future. To meet growing demands, the company relocated. However, Phil felt that something was missing. Unlike Adidas, which offered apparel, gear, and various sporting goods, Nike solely focused on shoes. Recognizing the need to diversify and compete at a higher level, they decided to step up their game if they ever aimed to go public.

CHAPTER 18: 1979

Phil recounts his frustrating encounter with a bureaucrat from the treasury department who remained unmoved despite his efforts to persuade him. This marked the beginning of a lengthy journey for Phil, as he found himself flying to Washington almost every other day to resolve the issue. Meanwhile, the company continued to expand to meet customer demands. However, challenges like fluctuating currencies and high labor costs prompted them to consider China as a potential solution.

CHAPTER 19: 1980

To counter the Feds’ actions, Phil and his team came up with a clever strategy. They launched a new shoe called the “One Line,” priced significantly lower than their other products. This allowed them to use its price as a benchmark for import duty calculations. They also aired a TV commercial highlighting the government’s unfair treatment of a small Oregon company. Additionally, they filed a $25 million lawsuit, alleging conspiracy by their competitors to sabotage them. Gradually, things started to turn in Phil’s favor, and a settlement offer was extended. Phil agreed to settle the matter by writing a check for $9 million. Finally, on December 2, 1980, the company went public, marking a significant milestone.

CONCLUSION

Phil Knight’s journey exemplifies the power of focus, dedication, sacrifice, and perseverance. Starting with a simple desire to succeed in his youth, he encountered numerous challenges on his path to success. His story serves as inspiration for anyone dreaming of achieving greatness. While luck may play a role, unwavering commitment is the key ingredient to realizing one’s dreams.