Success is a Marathon, Not a Sprint

Context

In his four decades at the helm of global footwear brand Nike, Phil Knight traversed the peaks and valleys of being a WarTime CEO. Years before he founded Nike, he began his footwear business selling shoes out of his car.

Capital was tight and the only way he could realise his dream of selling footwear to the athletic community was by scraping up the small loans he could secure and maintaining rapport with suppliers.

In college, Knight ran as an athlete for the University of Oregon. This early start in track and field, under the mentorship of his coach and, later on, business partner Bill Bowerman formed not only his passion for sports but also his entrepreneurial drive. 

Nike was built out of Knight’s desire to create products he was personally invested in. What is far less known, however, was how the footwear brand was established amid legal disputes that almost crippled Knight’s business pursuits.

In the early 1970s, Japanese shoe manufacturer Onitsuka – which was behind the iconic Onitsuka Tiger sports fashion brand – sued Knight’s distribution company Blue Ribbon Sports for breach of contract. Left with no other choice but to develop his own brand, Knight founded Nike.

What made Phil Knight a remarkable WarTime CEO?

Real-Life Story

The courtroom drama between Onitsuka and Knight’s Blue Ribbon Sports company was more than just a legal battle – it was the breaking point in a partnership that had once flourished. Blue Ribbon Sports, the US distributor for Onitsuka shoes, had built a strong foothold in the American market. Behind the scenes, cracks began to appear in the relationship.

Knight reportedly discovered Onitsuka, the very company whose shoes he championed, was quietly courting other distributors. This betrayal stung, leaving Knight wondering if his days as the exclusive distributor were numbered.

Determined not to be sidelined, Knight made a bold move by launching Nike. This act of defiance set the stage for a legal showdown. Onitsuka accused Blue Ribbon Sports of breaching a clause in their contract that prohibited the sale of other products while still under the agreement.

Knight fought back, arguing that Onitsuka had broken faith first by exploring new distribution avenues, even though their agreement was still in place.

The dispute erupted into lawsuits on two fronts – one in Japan and one in the US – with the stakes higher than ever. Knight’s victory in the American court proved pivotal by not only resolving the legal conflict but also unlocking the capital he desperately needed to fuel Nike’s rise at a make-or-break moment in the company’s history. What began as a fracture in trust ended with Knight charting a new path, forever altering the sportswear landscape.

This would only be the beginning of Knight’s business empire. In his years as Nike CEO, from 1964 to 2004, and as chairman until 2016, he led his teams with a “hands off” approach that would give them the space to be creative and collaborative.

His background in sports left an indelible mark on his leadership style, shaping Nike’s rise from a scrappy startup to a global powerhouse.

Knight approached business much like he approached running – by pushing boundaries. Just as a runner constantly seeks ways to improve performance, he instilled in his team a drive for innovation. He encouraged them to take risks and experiment, leading to breakthrough products such as the Air Jordan sneakers that would come to define Nike’s brand.

Knight also surrounded himself with people who shared his competitive spirit. Many of his early hires were athletes or had a connection to track and field. He sought out individuals with the same drive and determination that fuelled his own passion for running. These were people who wouldn’t hesitate to go the extra mile – literally and figuratively – to see the company succeed.

Yet, the most definitive lesson Knight took from his running days was the value of perseverance. Building Nike wasn’t a sprint; it was a marathon filled with hurdles, from selling shoes out of the back of his car to navigating legal battles. Still, Knight never lost stride. His resilience – honed on the track – was a key factor in Nike’s eventual triumph.

PostScript: By the time Knight stepped down in 2016, Nike had grown into the world’s largest seller of athletic footwear and apparel, boasting annual sales exceeding US$32bn.

Key Lessons

1) Adversity as a catalyst for growth

Knight’s legal battle with Onitsuka could have crippled his business, but instead, it pushed him to create Nike. In wartime scenarios, challenges can serve as turning points that lead to innovation and transformation.

2) Resilience is non-negotiable

From selling shoes out of his car to facing lawsuits, Knight’s perseverance in the face of adversity was crucial to Nike’s success. Wartime CEOs develop resilience to weather crises and emerge stronger.

3) Trusting your team to innovate  

Knight’s hands-off leadership approach empowered his team to experiment and take risks, resulting in game-changing products such as the Air Jordan. A WarTime CEO knows when to step back and let the team innovate under pressure.

4) Adapting and pivoting quickly

When his relationship with Onitsuka faltered, Knight didn’t hesitate to pivot by launching his own brand. In wartime, quick and decisive actions can turn potential setbacks into opportunities for growth.

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Until next week, may the force be with you.

Kevin

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