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 understanding of the previous chapters, answer the following questions related to this case:

1. What were Nikes key sources of competitive advantage relative to Adidas that allowed it to overtake Adidas to become the worldwide leader in athletic shoes?

2. 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.

3. How would you characterize the core resources and capabilities of Nike?

4. What prevents Nikes subcontractors from entering the U.S. market to compete with them?