In a profile of Nike in BUSINESS WEEK, Linda Himelstein
notes CEO Philip Knight's forecast earlier this year that the
company would double in size -- from $6B in revenue to $12B -- in
five years. In order to reach these goals, "Nike is embarking on
a risky strategy to transform itself from a shoemaker into a
global sports and fitness company." The company is now putting
the "swoosh" logo on everything from sunglasses to soccer balls.
But expansion also carries risk. Nike built its reputation on
"cutting-edge design and technology" with its running shoes, but
by branching out, it may end up "diluting the brand" and
disappointing consumers if it cannot maintain the same "quality
and innovation across all products" (BUSINESS WEEK, 6/17
issue)....Jeff Austin, agent to Nike endorser David Robinson, on
the sweat shop allegations: "I'd be surprised if Nike had any
knowledge of that. It's a very socially conscious company" (SAN
ANTONIO EXPRESS-NEWS, 6/9)....The N.Y. TIMES' Bob Herbert also
examines the charges, writing that Knight "has an extraordinary
racket going for him. There is absolutely no better way to get
rich than to exploit both the worker and the consumer" (N.Y.
TIMES, 6/10).
