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QUESTION

Read the case associated with chapter 7 (Nike: Sourcing and Strategy in Athletic Footwear). After reading the case, the case notes, chapter 7, and based upon the information provided in the case, the

Read the case associated with chapter 7 (Nike: Sourcing and Strategy in Athletic Footwear). After reading the case, the case notes, chapter 7, and based upon the information provided in the case, the information and concepts in chapter 7, and based upon your understandings of the previous chapters, answer the following questions related to this case:

  1. What were Nike’s key sources of competitive advantage relative to Adidas that allowed it to overtake Adidas to become the worldwide leader in athletic shoes?
  1. Estimate the magnitude of the cost advantage that accrued to Nike from producing in countries like Indonesia and China versus Adidas, which produced primarily in Germany.
  1. How would you characterize the core resources and capabilities of Nike?
  1. What prevents Nike’s subcontractors from entering the U.S. market to compete with them?

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************ **************** NameInstitutionDate            IntroductionNike Inc ** *** world's most extensive ******** footwear apparel *** ********* ******* with **** $30 billion ** **** Nike's ******** are **** ** more than *** ********* around *** world ****** ******* ** *** ******* and ******** ** ***** ******** ** the ****** In *** ******** ******** industry **** has * ********** **** **** * ****** ***** ** **** **** *** Nike's ******* competitors *** ****** and **** with ****** ****** ** ****** *** *** 10% ************ ******* ***** ******* *********** ******* ** the ******** ** *** to several ******* including *** focus ** ******* ********** marketing *** ** efficient ****** supply ***** ****** ****** supply ***** ** * ******** **** ** *** ******** ***** *** ** *********** *** *** design development and production ** Nike's ******** ****** ******** ******** ******* on ******* factors ********* cost ******* speed and flexibility Nike ******* its ******** from **** *** suppliers ** **** 50 countries worldwide **** has ***** several ********** recently ********* *********** ** poor ******* ********** *** ************* ********* ** its ******** ********* particularly ** ********** ***************** 1Nike's primary ******* ** *********** ********* ******** ** Adidas were *** ***** ** ******* ********** ********* supply ***** *** ********** marketing campaigns ****** ******* ********** *** ****** ** *** investment in ******** *** development ******** ** to ********* *** and ******** products ********** Nike's ********* ****** ***** ******* ** ** ******* *** ********** its ******** ******* *** efficiently ****** ********** ********* ********* ****** ** ** build a ****** ***** *** ****** a loyal ******** baseQuestion 2 ****** **** advantage **** ****** ***** from its ******** to ******* *** ******** ** countries **** ********* *** China ****** ****** ** ******* ** ***** countries ******* it to **** ********* ** lower ***** *** ***** ********** costs **** significant cost ********* ******* Nike to ******** ******** ****** and gain ****** share **** than Adidas ***** ******** its ******** ********* ** ******* ******* 2008) ******** **** advantage ******* it ** ****** *** worldwide ****** in athletic ***** ***** ** is ******* **** cost advantage *** a *** ****** ** Nike's *********** advantage *** ** *** *** ********* of ****** **** ********* was *********** and * ******** ****** ** *** company's *************** ******* core ********* and ************ *** ** ************* ** follows: * ******* innovation: ****** ********** in ******** *** *********** allows ** ** ********* *** *** ******** ******** ********** ** ********* ****** chain: ****** ********* ****** ***** allows ** ** ******* *** ********** *** products quickly *** *********** *** ********** marketing: Nike's aggressive ********* campaigns help ** ** ***** a ****** ***** and ****** a ***** ******** ********* ********* *** ************ **** ******* Nike ** become *** ********* leader ** athletic ************* * ***** *** ******* reasons *** ****** ************** would *** ** **** ** enter *** ** ****** ** ******* with **** ***** ****** subcontractors would *** ** **** ** ***** Nike's ******* ********** Nike's research and development investment allows ** ** ********* new and ******** ******** ********** ****** Nike's ************** would *** ** **** ** ***** ****** ********* ****** chain Nike's ********* supply ***** ****** ** to ******* *** ********** *** products quickly *** efficientlyThird ****** subcontractors ***** not ** **** ** match ****** ********** ********* ****** ********** marketing ********* **** ** to ***** * ****** ***** *** ****** * ***** ******** **** Fourth Nike's subcontractors ***** *** be able ** ***** Nike's ********* of scale ****** *********** ********** ****** ** ** ***** *********** **** ********** These ******* ***** **** ** ********* for ****** subcontractors to ***** the US market *** ******* with **** Nike's ****** ******** ** *** market ** *** to *** competitive ********** which ***** ** difficult for ****** ************** to ********************* *********** ********** ***** **** ** difficult for *** ************** to enter *** ** market and ******* **** Nike ****** ****** ******** in the ****** ** *** ** *** ***** on ******* innovation efficient ****** ***** ********** marketing ********* *** economies of ***** ***** ******* ***** **** it ********* *** ****** ************** ** ***** *** ** ****** *** ******* **** ********** ****** ******** affected *** ********* ** policies *** ********* ****** ******** ** produce its ******** ** ********* **** ********* *** China ******* ** to **** advantage ** ***** labor ***** **** *** ** ****** ******** ** *** * ************* ***** ***** ******* ** ** avoid **** costs *** **************** ********** **** *********** manufacturing ******* this ******** also led ** *********** ** **** ******* ********** *** ********* ***** Nike *** ********* ** these *********** ** ********* *** ********** and ******** procedures **** has **** *********** * code ** conduct *** its ************** ******* ******* ***** **** ****** ********** *** ******** ********** *** ineffective **** also ***** **** Nike's code of ******* **** *** do enough ** improve ******* ******************************************************************** * ***** ******* H ****** ********* Statement ******** of **** Available ** SSRN ************* K ***** ******* *** *********** ****** ****** Biography *** ******** Impact *** ******* ************************************************************************************************** * ****** *** ***** ** Nike The ******** *********

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