Shoe Dog

by

Phil Knight

Shoe Dog: 2. 1962 Summary & Analysis

Summary
Analysis
One evening, Knight works up the courage to talk to his father, Bill, about his Crazy Idea. The idea itself is something Knight came up with as a research project for one of his classes at Stanford. As a runner, Knight always had an interest in athletic shoes, so he studied the shoe market. His research led him to believe that Japanese shoe companies could make a major splash in the American market. When Knight presented his hypothesis to his class, they seemed bored. However, his professor approved of the project and thought he was onto something.
In 1962, American businesses made and sold the vast majority of products available to American citizens. Some international goods began to make their way into the market around this time but, by and large, the global economy was nothing like it is today. As such, Knight's idea probably looks especially "crazy" to both his classmates and his father.
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Now, Knight hopes to travel the world for some time, making Japan one of his many stops. While in Japan, he plans to meet with Japanese shoe companies and pitch his idea to them. Although he knows his plan is a long shot, he also wants to immerse himself in the various cultures he visits, so even if the Japan trip fails, it will still be a valuable life experience. However, there is one major roadblock standing in his way: money.
Knight imagines his trip around the world as both a business opportunity and a chance to find himself and mature. At the very least, he hopes the trip will serve as a source of inspiration and provide him with some perspective on life. However, because Knight has yet to have a real job, he will need the support of others to turn his dream into a reality.
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To go on the trip, Knight will need money from Bill. Although Bill is a lawyer and makes decent money, he is not rich, so Knight worries Bill might be wary about financing Knight’s idea. Knight is also unsure how his family will take his ideas about international travel. At this point in American history, most people have never been on an airplane, and even fewer have flown internationally. On top of everything else, Knight knows that Bill admires what he calls “respectability” above all else, and starting a company that is likely to fail is not a good way of becoming respectable.
Although there were commercial flights as early as the 1910s, by 1962, flying was still not quite as common as it is today, at least for working-class people. At that point, mostly upper-class people traveled by plane, and not even all that regularly. With Bill's policy of "respectability," Knight's Crazy Idea runs into its first obstacle. Knight cannot pull off his crazy idea on his own; he needs the support of others to make it happen. Of course, as the phrase suggests, Crazy Ideas do not translate to respectability.
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When Knight presents his idea to Bill, Bill’s reaction is mixed. Although he does not approve of the business half of the idea, he does approve of the travel, calling it “a finishing touch to [Knight’s] education.” Ultimately, Bill gives Knight the blessing and the money he asks for. 
Essentially, Knight succeeds because he pairs his Crazy Idea with something his father will find respectable. It is an intelligent ploy that works out in his favor. It is the first instance in the memoir of Knight's strategizing paying off.
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Although Bill is supportive, the rest of the family is less sure. In particular, they are wary of Japan, which the United States defeated in World War II just over a decade before. World War II was a memorable part of Knight’s childhood, as every adult in his family was glued to the radio, waiting to hear updates about the war. In particular, the updates regarding the Japanese were rarely good for Americans early in America’s involvement in the war. Japan won many decisive victories before America finally turned the tide.
Notably, the United States entered World War II after Japan's surprise attack on Pearl Harbor, which took over 2,000 American lives. At the end of World War II, America dropped two atomic bombs on Japan—one in Hiroshima, the other in Nagasaki. As such, it is not unreasonable for Knight's family to believe that Americans might not be welcome in Japan, given recent history.
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Leading up to the trip, Knight spends all his time reading up on where he will go. Before consulting with Bill, Knight also convinces his friend, Carter, to come with him. Carter and Knight both went to Stanford, and Carter is thrilled when Knight suggests traveling together. Then, on September 7, 1962, the trip begins. The first stop is Honolulu; the plane ticket costs $80 for a one-way trip.
Eighty dollars in 1962 would be equivalent to almost $800 today. Given that this is just one of many flights Knight plans to take, it is shaping up to be quite an expensive trip. Knight knows how important and costly the trip will be and plans ahead so he can make the most of it.
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Knight and Carter land in the Oahu Airport and immediately fall in love with Hawaii. They check into a motel near Waikiki Beach and then go swimming. Because they like the area so much, Knight and Carter decide to get jobs and stay for a while before continuing their travels. They find work as door-to-door encyclopedia salesmen, which is not great work, but it pays their bills.
Even in the 1960s, Hawaii was one of America's most popular tourist destinations, and its popularity only increased throughout the remainder of the 20th century. Notably, Hawaii only became an American state in 1959, during Eisenhower's presidency.
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Although Knight loves his time in Hawaii, he quickly discovers he is a terrible salesman. Knight is naturally shy, and encyclopedias in particular do not interest him and prove difficult to sell. As such, he starts looking for another job. Eventually, he finds one as a securities salesman.
For someone who would become a founding member of Nike, this section is a surprise. One would expect the founder of one of the richest companies in the world to be a good salesman.
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Knight quickly finds he is much better at selling securities than encyclopedias. Although his rhetoric and delivery could use some work, he knows his stuff because of his time at Stanford. Knight quickly makes enough money to stay in Hawaii as long as he wants. He spends his cash living life to the fullest and soaking up Hawaii’s beauty. Knight thinks that part of the reason he had such a feeling of “carpe diem” during this time is because nuclear tensions were at an all-time high just months before. 1962 was the year of the Cuban Missile Crisis, and there were genuine fears that civilization could come to an end.
Securities are tradable financial assets such as stocks, bonds, and mutual funds. If one is successful as a securities salesman, it is a lucrative job, which would provide Knight with more than he needs to live in Hawaii. The Cuban Missile Crisis was the height of the Cold War and the closest that the US and the Soviet Union came to launching nuclear weapons. Although the Cold War would continue for several decades, tensions relaxed after the Cuban Missile Crisis.
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Despite Knight’s love for Hawaii, he eventually decides it must come to an end. However, when he tells Carter he is ready to move on, Carter decides he doesn’t want to leave. Carter met a woman in Hawaii and wants to stay with her instead. Knight is disappointed, but he understands. Still, he does not let this setback stop him. He bids Carter farewell, and on Thanksgiving Day, 1962, the next leg of his trip begins.
Throughout the memoir, things work out differently than Knight plans them out on paper. Often these setbacks are annoying and sometimes even catastrophic. However, each time, Knight perseveres because he wants to follow his Crazy Idea through to the end.
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Knight gets on a flight headed to Japan. While on the flight, he starts to doubt his idea, worrying what the Japanese will think of Americans and wondering if they will ever accept his idea. However, he is already committed to his decision; there is no turning back now. When Knight arrives in Tokyo, he sees the devastation from World War II and thinks about how horrible it must have been.
Despite Knight's dedication to his cause, he still has his insecurities. In particular, he worries that larger, global factors—such as the impact of World War II—will render Japan unreachable. If this is the case, his Crazy Idea will be over before it starts.
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Shortly after settling in Tokyo, Knight meets up with some American businessmen who are friends with Bill. They show him around and give him suggestions about what to do while in Japan. Knight also tells the businessmen about his Crazy Idea. Although they give Knight an eye role, they also provide him with contacts that might be useful.
The presence of American businessmen in Tokyo is a hopeful sign for Knight. Their presence suggests that American businessmen can survive in Japan, which reassures him. Given that half of Knight's purpose for coming to Japan is sightseeing, their tourism recommendations are also welcome.
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After his meeting with the American businessmen, Knight starts exploring Japan and immersing himself in the culture. In particular, he is interested in Japan’s dominant religions, Buddhism and Shinto. He learns about the Japanese concepts of enlightenment and studies Zen, which claims, “Self is a mirage, a fever dream, and our stubborn belief in its reality not only wastes life but shortens it.” Knight contrasts the teachings of Zen with the most anti-Zen spot in Japan: The Tokyo Stock Exchange. There, he sees men who are self-obsessed and care only about money. Knight knows that there is more to life than the men at the Tokyo Stock Exchange seem to think and takes the teachings of Zen to heart.
Zen remains an essential conceptual framework for Knight throughout his life. Although Nike eventually becomes one of America's largest corporations, Knight insists that, although money is nice, it is not what drives him. For Knight, money is a means to an end, though he knows many people see the world differently. In this moment, he contrasts the Tokyo Stock Exchange with the teachings of Zen to remind himself of the type of person he wants to be while also thinking about what type of lifestyle to avoid.
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After seeing more landmarks and reading more, Knight decides it is time to pursue his Crazy Idea. He meets with the contacts the American businessmen gave him and tells them about his idea. The contacts are encouraging, though they tell Knight he must learn the customs of Japanese businessmen.
Here, Knight's Crazy Idea receives its first words of encouragement since its inception in his class at Stanford. However, to pull it off, there is still much Knight needs to learn.
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The contacts warn Knight not to be pushy because Japanese businessmen do not respond well to such behavior. Additionally, they tell Knight that he is unlikely to receive an offer right off the bat or know how well he did in the meeting. Only later, when he hears back, will he know if he was successful. Knight appreciates the advice but worries about whether he can pull off his pitch. The next day, he plans to meet with executives from Onitsuka Tiger, a Japanese shoe company.
The task Knight has ahead of him is exceptionally difficult; not only is he trying to sell a Crazy Idea, but he is trying to sell it to a culture of which he is largely ignorant. In the modern day, Onitsuka Tiger is one of the biggest shoe companies in Japan, though it was still establishing itself in the 1960s.
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Knight tries to hype himself up but remains nervous about the meeting. The following day, he heads to the Onitsuka showroom—where he thinks his meeting will take place—only to discover he has gone to the wrong spot. Quickly, he rushes across town to the Onitsuka factory and arrives a half hour late. Despite his tardiness, some executives meet with Knight and show him around the factory. Knight enjoys the tour but has no idea whether to be impressed.
Knight thinks he is ill-prepared for his meeting, a feeling that only gets worse when he discovers he went to the wrong place. Often, much of Knight's success comes down to luck. This is one such case, as Knight's tardiness does not bother the Onitsuka executives. His tardiness could very well have cost him his chance at pitching his business. Luckily, it did not.
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After the tour, the executives take Knight to a meeting room. They seat Knight at the head of the table and indicate that he should start his pitch. Before he begins talking, Knight does his best to calm himself. As he looks around the room, he cannot help but feel the presence of the recent history between the United States and Japan. He knows Japan is still reeling from its defeat in World War II, which likely impacted everyone in the room. However, Knight also sees that the Japanese businessmen are young like him and do not appear to be thinking about the war at all. Knight decides that if the Japanese businessmen wish to keep the war in the past, then he should as well.
News of World War II was a mainstay in Knight's childhood, and now he is in a room with people from a nation America considered its enemy for many years. Knight does not harbor any ill feelings toward the Japanese businessmen, nor does he hold them responsible for their country's actions. However, given America's use of the atomic bomb, at first, he is not sure they will feel the same way. Luckily, Knight and the Japanese businessmen are of a similar mindset, and although they cannot erase history, they do not need to make it an important part of their relationship.
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Quotes
Before Knight can start his speech, one of the businessmen asks him the name of his company. Knight does not have a company, so he makes one up on the fly: “Blue Ribbon Sports of Portland, Oregon.” From there, Knight gives the same presentation he gave to his class at Stanford. However, his Japanese audience receives the idea much better than his college peers did. After Knight finishes his presentation, the businessmen get up and start talking to one another excitedly. Then, they leave the room to consult privately. A few minutes later, the businessmen return, and their leader, Mr. Miyazaki, tells Knight they have been hoping to do exactly what Knight is pitching. Then, Miyazaki asks Knight if Blue Ribbon would represent Tiger shoes in America. Knight tells Miyazaki he can and then asks that he ship fifty dollars’ worth of shoes to Portland.
Knight's pitch demonstrates that he is over-prepared in some respects and under-prepared in others. The Stanford presentation lands nicely, but Knight does not really have a shoe company. He came to Japan to pitch himself as a distributor without a company that can distribute. However, Knight doesn’t let this rather major drawback stop him, and, in the end, he manages to make a small deal. As it turns out, his Crazy Idea was not completely crazy. Even though his father and classmates may not have liked it, it is an immediate hit with the people who matter. Now, Knight's problem is that he needs to make his fictitious company a reality.
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Knight is overjoyed but decides to keep traveling before returning to Portland. He travels to Hong Kong, the Philippines, Thailand, Vietnam, India, and Turkey, among other places. Knight does his best to see important landmarks everywhere he goes and soak up every bit of culture he can. In particular, he pays close attention to the philosophical and religious traditions of the places he travels to and internalizes many of their core teachings. He reads, Rūmī, Dante, Rousseau, Voltaire, and the Upanishads.
After achieving the goal of the first half of his trip—that is, putting his Crazy Idea into motion—Knight sets his sight on the second: exploring himself through engagement with the customs and beliefs of other cultures. Knight takes this part of his trip just as seriously and reads voraciously. His reflections on the literary, philosophical, and religious works he reads—many of which are quite complex—suggest that he thinks deeply about their content and genuinely grows as a person because of it.
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Quotes
Knight also travels to Greece, where he visits the Temple of Athena Nike. Apparently, the temple once contained a frieze of Athena, “thought to be the bringer of ‘nike,’ or victory.” Something about the temple is compelling to Knight, who stands in front of it for a long time. Later in life, Knight discovers that Aristophanes wrote a play set in the Temple of Nike, which contains a scene where a warrior gifts a king a new pair of shoes.
Of course, Nike does not yet exist, so Knight's connections here are made retrospectively. Nonetheless, it is a serendipitous moment that foreshadows the company Knight will one day create. The Aristophanes play that Knight mentions is titled The Knights, which makes Nike, Inc. look even more predetermined.
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On February 24, 1963, Knight returns home. It is the day of his 25th birthday. When he enters his house, his family hardly recognizes him because he has grown a beard and neglected to cut his hair. Although Knight’s family is eager to talk to him and hear about his travels, Knight’s first order of business when he gets home is to ask whether his shoes arrived.
Knight is away for roughly half a year and returns a completely changed person. Despite not seeing his family for many months, Knight's first concern is his shoes, which demonstrates that he wants to get started on Blue Ribbon immediately.
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