Trainers: An old pair of Nikes that altered history
Summary
Host Ed Conway uses Nike’s history to explore the rise of global supply chains, detailing how Phil Knight’s outsourcing model and battle against US customs duties reshaped the industry. The episode traces the shift of manufacturing from the West to Asia, highlighting the economic impacts on countries like China and Vietnam. It concludes by connecting this "hollowed-out" corporate structure to Apple’s modern business strategy, illustrating how globalization transformed global production.
Topics discussed
Introduction: The Nike customs battle and the 'One Line' trainer
Phil Knight's thesis: From Stanford paper to founding Blue Ribbon Sports
The split from Onitsuka and the birth of the Nike brand
The 'Smile Curve': Nike's asset-light business model
The American Selling Price rule and Nike's tariff evasion strategy
Innovation: The Cortez, Air technology, and manufacturing complexity
Global supply chains: Outsourcing to Asia and the rise of Vietnam
The hidden giants: Contract manufacturers like Pao Chen
Apple and Foxconn: The smartphone supply chain parallel
China's industrial dominance and geopolitical leverage
Conclusion: De-industrialization, the China Shock, and future outlook
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