Phil Knight takes us on an incredible journey, guiding us through the birth and growth of his idea, which would eventually blossom into Nike. He is not just an entrepreneur, but a visionary with a true passion for shoes and a belief in revolutionising the industry. The book provides a captivating account of the business development process, allowing us to intimately get to know Phil, his character, and the immense effort he dedicated to his company. We are also introduced to the various other characters who played vital roles in the Nike story, including his family members, adversaries, and allies.
For readers who enjoy success stories of renowned entrepreneurs, this book is a true treasure. The narrative feels authentic and natural, as if we are living through the concerns, stresses, challenges, and joys alongside Phil (Buck) Knight himself.
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Who is Phil Knight?
The author of this book, Phil Knight, is one of the well-known self-made entrepreneurs of our time. He is the co-founder of Nike, the global shoe giant. He dedicated over 50 years to building and growing the company.
He started his own company in his mid-twenties with $500 and his current net worth is estimated to be $38.8 billion.
In the book, there is no dedicated chapter about him, but at the same time, the entire book describes him, his character traits, reactions, and thoughts. Often, you read how indecisive he can get or how determined he can be about certain other things. He describes himself through very tough moments, when a lot of close people doubted his efforts as well. He doubted himself, wondering if it was a foolish idea to begin this entire journey. There are moments of silence where he’s not able to react, there are moments of anger, frustration, and stubbornness. But in most moments, you can sense that Phil is the person who, in challenging times, turns inward and listens to his inner self, to find the right solution, even if the right solution might not be perfect or seem like the obvious choice.
He shows integrity, resilience, and the power of believing in people, giving them a chance to show their potential and talent. He’s a former track runner himself from school and is a sports fan, following all the major sports events, living the sports championships, and describing some of the major breathtaking sports events in his book, as those sports events are also part of his journey in one way or another.
Blue Ribbons & World Wanders
From the very first pages of the book, one can sense that Phil was always concerned about shoes, running shoes specifically. The earliest he mentions when he did concern himself with the idea of the shoe business is probably during his time at Stanford University. He believed in the potential of his idea and believed that Japanese running shoes would soon take over the German ones, which were dominating the industry and market at the time.
With this in mind, Phil wanted to fly to Japan to investigate this and meet with the business owners of the shoe industry. He talks about how nervous he was presenting this idea to his dad, with whom he always had a somewhat complicated relationship. Nevertheless, the idea of having a trip upon graduation was agreed, mainly because his dad didn’t get a chance to travel much when he was young. Phil set to plan his trip, not only to Japan but around the world.
”How can I leave my mark on the world, I thought, unless I get out there first and see it?
Phil KnightShoe Dog
The initial plan was for Phil to travel with his friend Carter. However, after spending an extended period in their first destination of Hawaii, Carter decided to stay behind. Undeterred, Phil made the decision to continue on with his world travel solo.
Throughout the book, Phil shares a lot of thoughts on Japan. He describes his trips (he travels multiple times to Japan). The first time in Japan, the main thing on his mind was to meet shoe entrepreneurs. He makes his choice and travels to Kobe to meet the shoe manufacturer Onitsuka. He prepares himself for this meeting. He describes every moment of that meeting in his book, as it was his very first business pitch – how nervous he was, but also how determined he was in his mind. Fortunately for him, the Onitsuka company was also interested in venturing out to the American market. So they asked for the name and address of the company to ship some samples to him back in the US, to which Phil improvised on the spot. Before that moment, he didn’t have a company, so his mind wanders back home, to the wall of blue ribbons he collected from all his track running, and he calls his company name for the first time in Kobe, Japan – “Blue Ribbons Sports”. And this is how it all starts.
After Japan, he continues with his world travel. This is my favorite part of the book, although he doesn’t describe it extensively, he manages to share his young age adventure with the readers. Nowadays, it’s probably less impressive, but imagine being in your mid-twenties in the 1960s and traveling the world – China, Bangkok, Vietnam, Calcutta, Tibet, Nepal, India, Kenya, Egypt, Jerusalem. He briefly describes the difficulties and challenges in different cities and countries, but also describes amazing moments – the pyramids of Egypt, the Bosporus and mosques of Istanbul, the Sistine Chapel, the Piazza and trattorias of Rome, reading Dante and gazing at David’s eyes in Florence, drinking cappuccino in a cafe in Paris where Hemingway was sitting, experiencing the Checkpoint Charlie in Berlin and East Germany. And everywhere he went, he was noticing the shoes on people’s feet.
Before setting out on his journey, Phil describes that he was excited about two things:
- Pitching his idea to the Japanese, and
- Standing before the Acropolis.
And both he accomplishes with his grand trip.
The Shoe Dog: A Journey of Passion and Innovation
The title “Shoe Dog” might seem puzzling at first, but Phil Knight defines it as someone who dedicates their life to the creation, design, and sale of shoes. Phil himself was one such individual, harboring an unwavering passion for athletic footwear, particularly running shoes. However, his journey was not a solitary one; he acknowledges the influential figures who directly or indirectly impacted Nike’s transformation and growth.
Bowerman’s Invaluable Contributions
One such pivotal figure was Bill Bowerman, Phil’s high school coach, whom he held in high regard. Phil recounts moments from his school days when Bowerman’s influence shaped his path. The first time Phil received a pair of shoes, he showed them to Bowerman and shared his vision. After some time, Bowerman decided to become Phil’s partner, and their shoe company venture began.
Bowerman played a crucial role in enhancing the shoes’ performance. Initially, he dissected and examined the Tiger shoes, making them more durable, efficient, and better suited for running. His feedback was invaluable not only for Phil but also for Onitsuka, the Japanese manufacturer, as he constantly provided insights on tailoring the shoes for the American market. Later, Bowerman revolutionized Nike’s soles with the introduction of the groundbreaking waffle soles, a first in the industry.
Building a Team of Passionate Individuals
Apart from Bowerman, Phil strategically assembled a team of individuals with diverse backgrounds but a shared passion for sports and selling quality shoes to customers. One such individual was Johnson, the second employee of Blue Ribbon Sports (the first employee was Phil’s sister, who did some administrative work for him), who remained by Phil’s side throughout the journey of building the Nike empire. Interestingly, Johnson came up with the name “Nike” after dreaming about it, which Phil ultimately selected as the new company’s name when they decided to manufacture their own shoes instead of selling Onitsuka’s Tigers.
The book also mentions other “shoe dogs” along the way, including scientists. Notably, after a few years in the market, Phil and his team managed to build a reputation as a group dedicated to providing exceptional and impeccable shoes. Salespeople were drawn to them, not just because of the shoes themselves but because of Phil’s team and the trust and quality they had established. They recognized that Phil and his team were doing something extraordinary and were willing to cooperate more closely with them, even during the Blue Ribbon Sports era.
Overcoming Challenges: A Journey of Resilience and Determination
”The man who moves the mountain begins by carrying away small stones.
Confucius
Navigating the Onitsuka Partnership
From the outset, the partnership with Onitsuka Company was not without its challenges. Although Phil met with Onitsuka and his team members several times, flying to Japan to resolve issues in person, the relationship would sometimes become worrisome. Delays in shoe deliveries or the emergence of other sales companies selling Tiger shoes, despite Phil’s efforts to secure exclusive representation in the US market, were common occurrences. This partnership ultimately ended in a court case when Onitsuka’s team learned about the Nike initiative from Phil’s side, marking one of the biggest challenges in his life. However, it also served as a turning point, allowing Phil to focus solely on his own shoes and no longer sell those of others.
Financial Hurdles and Innovative Solutions
Money was another significant challenge, with constant financial issues, debt, and the need to raise funds. Over time, obtaining loans from banks became increasingly difficult as they questioned the business model and the mounting debt, despite consistently strong sales numbers. The discussion of going public arose several times, but each time it brought more questions, forcing them to explore alternative options. Ultimately, the Japanese merchant company of Nissho Iwai proved instrumental, helping to build connections with Japanese factories and supporting Phil through his most challenging financial times.
The economic crisis of the early 1970s added further strain, as the market struggled, and during Nixon’s presidency, everyone was trying to make ends meet. The search for factories to produce Nike shoes was fraught with difficulties, whether in Mexico, Puerto Rico, Japan, China, or Taiwan – each location presented its own set of challenges. However, through teamwork and perseverance, they managed to produce shoes with eye-catching designs and exceptional performance, exactly as they had envisioned.
Navigating Legal and Bureaucratic Obstacles
Another significant hurdle came from the FBI and US Customs when they issued a $25 million bill for all those years of importing shoes from Japan. Initially a shock, this massive sum posed a significant challenge, as Phil did not have such an amount available despite strong sales numbers in the late 1970s. After lengthy negotiations with federal bureaucrats, they managed to reduce the fine to $9 million, which was still a substantial sum for Phil at the time.
Phil was always on alert, tackling hundreds of problems daily. Over the years, he developed a habit of sitting in his recliner every night, making notes on his yellow pad, solving financial issues, problems with factories, sales, and banks. Despite all these challenges Phil managed to gather his strength and focus to make it happen. There were many times when Phil and his colleagues felt on the verge of reaching their limits. The never-ending cycle of problems to solve and fires to put out left little room for rest and recovery. Yet, through sheer determination and a commitment to their mission, they pushed forward, refusing to give up even when the path ahead seemed uncertain.
Personal Relationships
In the book, there are many moments where Phil describes his relationships with different people in his life. Phil talks about his father, describing his character, values, and specifically their relationship. Although it’s somewhat tense at times, there are also cherished moments that Phil decides to share with everyone. What he always wanted from his father was acknowledgment and approval. Although his father didn’t approve of his endeavor much in the beginning, after witnessing some wins and Nike’s growth, there were moments where he showed how proud he was of his son – albeit not in words.
One touching moment Phil describes is when his father called him once to share a sports event he had seen on TV. To Phil’s surprise, his father wasn’t describing what happened to the sportsman but rather the shoes he was wearing – Nike – and how the camera zoomed in on the “swoosh” logo, which was on national TV. Those moments assured Phil that his father finally approved of his work.
Another family member whom Phil remembers dearly in his book is his mother. He shares sweet memories of her, the moments when she encouraged him to run track, as she thought he was fast, and the time when she defended him in front of his father by simply paying for a pair of Tiger shoes and ordering them, showing his father that she believed in him. These moments are the warming parts of the book.
Phil also describes some of his personal relationships, but mainly how he meets his wife, Penny, how they got to know each other, and how they lived throughout the years, with her supporting him. Phil is very attentive to the family he built with Penny and their children, especially his first-born, Matthew. He describes his son Matt as rebellious, full of resentment, and hard to bond with. For years, he blamed himself for not being around much and not spending more time with his sons. He always wanted to be a better dad than his own father, but he always made time for bedtime stories.
Later, towards the end of his book, he also shares about the saddest part of his life when he loses his son. He describes what he felt and how he imagined the accident happened – and those pages, I must say, brought tears to my eyes. It’s very emotional, but at the same time, so brave of him to face it and share with readers how it is for him and how hard it is not being able to go back and change anything. It’s very powerful.
Another beautiful part of the book is where Phil summarizes his close team at Nike – his friends and partners. For years, through many challenges and calamities, those who stayed by his side, endured those challenges together with him, and helped him in different areas to build Nike. He would look at them and be amazed at how he managed to collect such an invaluable team – a formidable team, as he calls it. Together, they built a culture where salary or benefits weren’t a priority. Phil let them be and do things independently, without interfering or controlling much, because this is how he always wanted others to treat him.
”Don’t tell people how to do things, tell them what to do and let them surprise you with their results.
Phil Knight (original quote by George S Patton)Shoe Dog
The Bucket List
Phil once watched the movie “The Bucket List” played by Morgan Freeman and Jack Nicholson, who portray two terminally ill men embarking on a road trip with a wish list of things to do before they die. This triggered a lot of thoughts in Phil. He wanted to put together a bucket list for himself, although most of the things seemed to be checked off by the time he finally made it with Nike.
Additional things came to mind, and he managed to attend to them as well. This included becoming a philanthropist and establishing a fund to support community-oriented projects. Another item on the list is writing the Nike story, which he also managed to accomplish.
But mostly, it was regrets – not being able to avoid layoffs at hard times, not being a better dad for Matthew, and the biggest regret that he couldn’t live it all over again because if he could, he would have done it again.
The lessons learned from this book
- Stay true to yourself and your ideas. If you think your idea is worth a shot and you believe in its value, never stop. Work on it and work hard to achieve it.
- In Phil’s own words, “Seek a calling, not just a job or career,” because then the burdens that come with it are bearable, and the highest moments would feel the best.
- Have faith in yourself and the people who chose to bear the burden of this journey with you.
- For every challenging situation, there is a solution, even if it’s not the best one for that moment. Listen to your gut feeling, stay focused, and do as much as you can; the rest will come.
- Acknowledge the power of luck and learn to make the most of those lucky moments.
Final Word
Although this book review barely manages to describe this book, you should definitely check it out for yourself and read it if you’d like to know more about Phil Knight’s story and how Nike was built. It remains one of my favorite success story books and a great read for anyone seeking an entrepreneurial journey. There are tons of invaluable lessons and advice.
