Shoe Dog

by

Phil Knight

Shoe Dog: 18. 1977 Summary & Analysis

Summary
Analysis
In March of 1997, Knight has one of the most important meetings of his life. A man named M. Frank Rudy asks to meet with him about a shoe design idea. Rudy thinks that athletic shoes could benefit from air injections, which would provide better cushioning. At first, Knight thinks Rudy is insane and that the idea is ridiculous. However, when Rudy hands him a prototype, which Knight slips in his shoe, he realizes Rudy might be on to something. With the help of Strasser, Knight writes up a contract with Rudy and starts experimenting with his new “air sole” technology.
Bowerman’s waffle shoe is one of the two most important innovations Nike made in shoe design; the other is Rudy’s air sole. Ironically, Knight treats Rudy the same way others treated Knight when he first suggests distributing Japanese shoes. In reality, Rudy has just the kind of Crazy Idea that Knight likes, and their partnership together has the potential to bring Nike to the next level.
Themes
Entrepreneurship, Experience, and Perseverance Theme Icon
Leadership Theme Icon
Quotes
Additionally, Knight continues looking for athletes to represent the Nike brand. He starts a campaign to recruit college athletes to Nike, and he manages to get Nike on TV in an episode of Charlie’s Angels. Overall, Nike’s advertising is better than it has ever been, and the sales numbers back it up.
The more Knight can popularize the Nike brand, the bigger the company will be able to grow. Knight is a great advertiser and knows how to get himself and his product in front of the maximum number of people.
Themes
Entrepreneurship, Experience, and Perseverance Theme Icon
At the end of 1977, yet another disaster strikes. Knight gets a letter from the U.S. Customs office, claiming he owes the United States government $25 million. At first, Knight assumes the letter must be some sort of elaborate joke. However, when he looks into it, he finds out it is legitimate. Apparently, Nike’s competitors lobbied the American government to enforce an archaic law that would require Nike to pay an extra 40% in taxes on all their imports. Knight knows that Nike cannot afford to pay the United States government $25 million. He determines to fight the government with every tool available to him. Otherwise, he knows his company will fail.
Because Knight is the first one to consider using factories in other countries to produce his shoes, Nike is the only company that will be affected by the enforcement of this archaic law. All of Nike’s competitors manufacture their shoes in the United States, so they will not have to pay the extra 40%. Twenty-five million dollars is a devastating amount for Nike to have to pay, so Knight will have to find a way around it if he wants Nike to survive. Of course, this also makes Nike’s persistent financial issues worse.
Themes
Entrepreneurship, Experience, and Perseverance Theme Icon
Global Economies Theme Icon
Despite its troubles with the government, Nike continues to do well. By the end of 1977, Nike’s total sales number $70 million. Knight does his best to focus on the bright side and tries not to think about his upcoming fight with the U.S. government. He even buys his family a bigger house because his sons are starting to grow up. Although Knight does his best to spend time with Matthew and Travis, his relationship with them is difficult. Matthew always rebels against him, and neither son is interested in sports. It hurts Knight that he cannot share the thing he loves most in the world with his sons.
It is telling that this section is one of the few times in the memoir when Knight mentions his children. Although he tries to find some time to spend with them every day, it is unfortunately the case that Nike always takes precedence. Knight wants to be a part of his sons' lives, but he also wants to build one of the world’s biggest companies. As his sons grow older, Knight realizes that he cannot do both simultaneously.
Themes
Entrepreneurship, Experience, and Perseverance Theme Icon
Balancing Family and Work Theme Icon
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