Shoe Dog

by

Phil Knight

Shoe Dog: 6. 1966 Summary & Analysis

Summary
Analysis
At the start of 1966, Knight’s contract with Onitsuka is about to expire. He hopes a letter will come soon asking him to renew, but so far, nothing has arrived. Knight also worries that his bank will stop letting him take our bigger and bigger loans, which would essentially cripple his business. Meanwhile, Knight continues to receive an endless slew of letters from Johnson. Virtually every time Johnson sells a pair of shoes, he writes to let Knight know about it. Always, Johnson closes his letters by asking Knight to respond to him. Knight never does.
Perhaps without realizing it, Knight regularly leaves Johnson in the same situation he is in with Onitsuka; that is, they are both waiting for letters to reaffirm their cause, but the letters never arrive. Onitsuka could fix Knight’s problem just as Knight could fix Johnson’s, but both think better of it. Additionally, if Knight keeps trying to take out loans twice the size of his current business, he will quickly have a problem finding lenders.
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Knight wonders why he treats Johnson the way he does. Could he be trying to be like Bill or Bowerman, only handing out praise on rare occasions? In Blue Ribbon’s early years, Knight read a lot of different books about leaders and heroes. In particular, Knight loves Winston Churchill, JFK, and Leo Tolstoy. He learned everything about leadership under extreme conditions from their actions and writings. 
Here, Knight takes a moment to reflect on his leadership capabilities. Although he generally does not question his instincts, it is important to him that he can be the best leader possible. Two of the men he admires (Churchill and JFK) were prominent world leaders, while the other (Tolstoy) is one of the most significant authors in world literature. In other words, he is setting a high bar for himself.
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Evidently, Knight’s leadership is effective as far as Johnson is concerned because Johnson continues to be a great salesman. Knight gives Johnson freedom to conduct sales how he wants, and he devises creative ways to sell shoes and endlessly promote Blue Ribbon. Johnson even creates his own database of Blue Ribbon customers and constantly writes to them to make them feel special—he even sends out Christmas and birthday cards. Often, the customers write back and provide helpful feedback about the shoes and Blue Ribbon’s future. Johnson’s work ethic impresses Knight, who wonders where he finds the time to be so productive.
Whether Johnson is successful because of Knight or in spite of him is difficult to know. Either way, Knight picked the right man when he asked Johnson to join his team. Johnson’s dedication to Blue Ribbon suggests he believes in its mission, and he is a significant reason for its early success. Especially with a niche business, it is important to make customers feel special; that is exactly what Johnson does.
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One problem with Johnson’s salesmanship is that he does not confine his sales to the Western states like he is supposed to. Additionally, Knight never asks him to stop selling to his customers on the East Coast, and he hopes the Marlboro Man will just ignore them.
Knight’s willingness to let Johnson sell to people on the East Coast suggests he is okay with playing fast and loose with his current Onitsuka contract. Although his plan helps Blue Ribbon in the present, it is setting him up for legal problems in the future.
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By the summer of 1966, Knight decides Blue Ribbon needs new headquarters because his parents’ basement is too small. He rents a one-bedroom apartment, which he treats as a combination of a warehouse and a bachelor pad. After moving, Knight contemplates whether he should give Johnson his new address. Eventually, he decides that he should in case anything serious comes up.
This section marks a significant moment for Blue Ribbon as a company. It has expanded so much that it requires a new building, which is a testament to Knight and Johnson’s hard work. However, the more it expands, the more work it will be for Knight, who is already a non-stop workaholic.
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Shortly after Knight moves, Johnson sends him two letters he cannot ignore. The first letter informs Knight that Johnson is getting a divorce. The second letter says that Johnson was in a serious car accident in which he fractured his skull. Despite these incidents, Johnson is in good spirits and continues working for Blue Ribbon. However, given the many recent bills he has racked up, he wants to talk seriously with Knight about Blue Ribbon’s future.
Johnson’s willingness to continue to work hard for Blue Ribbon despite everything going on with his personal life speaks to his dedication to the cause. However, it also suggests that he, like Knight, might be too addicted to work, so much so that it is causing his personal life to suffer.
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Feeling bad for Johnson, Knight does his best to give him hope in Blue Ribbon’s future, though he tries his best not to make promises that are too grandiose. Additionally, he promises Johnson that he can open up a retail store—something Johnson has wanted to do for some time—if he manages to sell 3,250 pairs of Tigers before the end of June. Knight thinks the number is impossible, but Johnson manages it, despite his injuries.
Again, Knight must walk a careful line; he wants to get the most out of Johnson without feeling like he is taking advantage of him. In this case, he finally gives Johnson some positive reinforcement, and, in response, Johnson outperforms Knight’s wildest expectations.
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Knight keeps his promise and allows Johnson to open up a retail store. Johnson does a great job with the store, which instantly becomes a big hit with the running community. However, although the store is a success, more problems emerge. Knight discovers the Marlboro Man is back and placing ads for Tiger shoes. Knight knows he needs to get the Marlboro Man out of the picture, but he does not know how.
Again, Johnson proves crucial to Blue Ribbon’s early success. His store ensures that Blue Ribbon is a known name in the area, and it is another excellent way for the company to retain an active customer base. Meanwhile, Knight is entirely out of his depth; the Marlboro Man could spell the death of Blue Ribbon if Knight does not figure out how to handle him soon.
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Knight travels to Los Angeles to visit Johnson and strategize. Johnson’s apartment is full of shoes and books. Johnson is a voracious reader whose library contains hefty tomes of philosophy and classical literature. Johnson also owns a 75-gallon fish tank full of exotic marine life such as seahorses and a baby octopus. Knight watches as Johnson feeds the octopus a crab.
Johnson’s apartment suggests he is an eccentric but highly intelligent man. Evidently, Johnson has gained Knight’s trust, as Knight thinks it necessary to consult him on the state of the business. Indeed, Knight may feel that Johnson knows Blue Ribbon more than he does at this point.
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Knight and Johnson talk about the state of the company. Knight tells Johnson about his problems with the Marlboro Man, and Johnson advises him to travel to Japan to touch base with the executives at Onitsuka. Knight thinks Johnson might be right, but he does not have enough money to travel to Japan at the moment. Furthermore, he knows the Marlboro Man’s agreement with Onitsuka predates his own, and he worries Blue Ribbon will not have any standing.
Again, money is a big problem for Blue Ribbon. Because Knight does not have any cash on hand, he cannot afford to take risks because everything he does could prove fatal for the company. If he takes a trip to Japan and it is a failure, it could spell the end for Blue Ribbon.
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Ultimately, Knight decides going to Japan is his only option. He takes two weeks off work at Price Waterhouse and books a plane ticket to Japan using his credit card. When Knight arrives in Japan, he learns Onitsuka has a new export manager named Kitami. Again, Knight spends a good deal of time studying How to Do Business with the Japanese before his imminent meeting.
The constant turnover of managers at Onitsuka suggests they are going through a lot of changes, just like Blue Ribbon. At this point, Knight can't know whether those changes will be good or bad for him. Regardless, they are certainly inconvenient, as Knight has to ingratiate himself to a new person every time he visits Japan.
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When Knight meets with Kitami, he discovers Mr. Onitsuka will not be present. Knight hoped to benefit from Mr. Onitsuka’s fondness for him, but apparently that is not an option. Instead, he pitches himself to Kitami and asks that Blue Ribbon become the sole distributor of Onitsuka in the United States. He deliberately neglects to mention the Marlboro Man in the meeting. Kitami tells Knight he cannot be the sole distributor because Blue Ribbon does not have offices on the East Coast. In response, Knight lies and says Blue Ribbon does have an office on the East Coast. Immediately, Kitami’s demeanor changes, and he offers Knight a three-year contract during which Blue Ribbon will be Onitsuka's sole distributor in the U.S.
Knight lied the first time he was in Japan about Blue Ribbon, and now he has lied again about how prominent Blue Ribbon is in the United States. Because it is impossible for Kitami to know that Knight is lying, he must take him at his word. However, now Knight has put himself in yet another difficult situation. Not only does he lack the funds to open offices on the East Coast, but he also lacks the personnel. Additionally, he will need to keep up the ruse that Blue Ribbon is a more prominent company than it is.
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Now, Knight’s only problem is that he needs to make his lie a reality. He knows he cannot go to the East Coast and will need someone there in his place. There is only one person he knows would be willing to make such a sacrifice: Johnson.
Again, Knight turns to Johnson to do the difficult work for Blue Ribbon that he does not want to do himself. Knight presents himself as having no choice in the matter, though surely it will be just as difficult for Johnson to uproot his life as it would be for him.
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