Name: Nike: Going Public
Rating: 4.2 (192 reviews)
Author: The Blinkist Team

A Crazy Idea

It’s 1962, and a young, fresh graduate from Stanford Business School is brimming with an unusual idea that he can’t shake off. He’s envisaged importing high-quality running shoes to America, crafted by a Japanese company, Onitsuka Tiger. Buying these shoes to sell in the US was a concept that was met with skepticism from everyone around him, including his professors, his peers, and his own father. Still, undeterred by the naysayers, he chooses to pursue his vision. And so, fueled by an undying commitment, he boards a plane to Japan, where he will present his bold proposition to an audience of seasoned Japanese businessmen.

As much to his surprise as it is to others, it turns out to be a success, and Onitsuka agrees to send him 300 pairs of shoes to jumpstart his venture.

With that, the first leg of this young entrepreneur’s journey is initiated, and in the months that follow, he finds himself selling Japanese shoes straight from the trunk of his car. This is the story of Phil Knight, and the birth of what would become one of the largest global brands, Nike.

Nike is an amazing company, with an incredible origin story, but that story isn’t our focus here. In this Blink, we want to focus on the moment when Nike became a publicly owned company.

We want to spotlight the risks, the rewards and the unique strategy Phil Knight used to overcome his fear of losing control of the company. So, if you’ve ever weighed the pros and cons of taking your company public with an IPO, and wondered about how that might affect your core business values, or even just what an IPO is, stay tuned.

What is an IPO

IPO stands for Initial Public Offering (IPO), and it refers to the process by which a private corporation offers its shares to the public in a new stock issuance for the first time. This allows the company to raise equity capital from public investors, marking a transition from a private to a public entity.

Before an IPO, a company is typically considered private, with a limited number of shareholders that may include early investors like founders, family, and friends, along with professional investors such as venture capitalists or angel investors. You can generate enough capital that way, but it can be relatively limited. What the IPO does is allow the company to raise a significant amount of money, providing the opportunity for growth and expansion. It also increases transparency and listing credibility, which can help the company secure better terms when seeking borrowed funds.

A Clever Move

Now, back to the story of Nike. At the time of the IPO, Nike was a private company with very few owners. Two to be exact: Phil Knight and Bill Bowerman.

At the time, Bowerman was the most famous track coach in America. He joined Nike in its infancy, when Knight was selling the shoes out of his trunk. However, Bowerman wanted Knight to retain operational control of the company, so they ended up splitting the company 51 percent to Knight and 49 percent to Bowerman.

Preserving the Core and Scaling New Heights

In spite of the inevitable challenges, what remained constant in the company's journey was its commitment to preserve the core values that defined it. They believed that work should be both playful and meaningful, and that one must always strive to avoid a passive life that just seemed to slip by. The motto "Grow or Die" was deeply ingrained in their business strategy, with all profits invested straight back into the business to fuel its growth.

Even after taking Nike public through an initial public offering, the company managed to maintain its unique ethos and ethics, thanks to innovative strategies and an unwavering commitment to its integrity. Today, the company prides itself on this integrity, attributing much of its worldwide success to its adherence to these values. Through it all, the company's journey has shown that the true power of a brand lies in staying true to its beliefs, showing unwavering commitment to its ideas, and constantly striving to deliver on its promises.

Conclusion

This has been the story of how Nike saved itself by going public. It’s not just a story though; it’s a lesson.

In the course of starting or leading any venture, a leader is bound to come across challenges that require them to bring in outside help. A savvy leader needs to know how to take that outside help and influence, without losing sight of the vision they have for the company.

Key ideas in Nike: Going Public

What is Nike: Going Public about?

The Story of "Nike: Going Public" recounts the journey of sports industry titan Nike as it transitioned from a private to a public company, an important move to rescue the business. Navigating the hurdles of going public was no easy task, as this narrative unveils the trials faced by Phil Knight, Nike's CEO, and his eventual triumph.