As NIKE followed the market that exploded around it in the 1970s, its product line evolved in
four directions from the original racing shoe, as shown in Figure A. This evolution was based on the
company’s growing knowledge of shoe making and sports, market factors such as segment size and
competitiveness, and the demonstrated transferability of the NIKE brand name. By 1982, athletic
footwear represented 84% of the company’s business, down from 97% in 1978 (see Exhibit 1).