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

1. What were Nikes key sources of competitive advantage relative to Adidas thatallowed it to overtake Adidas to become the worldwide leader in athletic shoes?a. Nike focused on footwear and athletic apparelb. Adidas labor costs per shoe were roughly 60 times greater than Nikes whenNike emerged as the world leader in athletic footwearc. Subcontractors became partners rather than competitorsd. Nike leveraged vertical integration2. Estimate the magnitude of the cost advantage that accrued to Nike from producing incountries like Indonesia and China versus Adidas, which produced primarily inGermany.a. The comparable cost per pair of shoes is roughly $0.25 in China versus $80.00in Germany, assuming an industry average of .96 labor hours per shoe andequal labor productivityb. The comparable cost per pair of shoes is roughly $1.50 in China versus $40.00in Germany, assuming an industry average of .96 labor hours per shoe andequal labor productivityc. The comparable cost per pair of shoes is roughly $9.50 in China versus $28.50in Germany, assuming an industry average of .96 labor hours per shoe andequal labor productivityd. The comparable cost per pair of shoes is roughly equal in China versusGermany3. How would you characterize the core resources and capabilities of Nike?a. Shoe design and marketingb. Barriers to imitation such as consistently producing new shoe designs, brand,and shelf space in key athletic footwear distribution channelsc. Low costs (via outsourcing)d. All of the above4. What prevents Nikes subcontractors from entering the U.S. market to compete withthem?a. Keep IP only in the domestic marketb. Use multiple subcontractors; dont let any individual subcontractor get too bigc. Pursue vertical integration with subcontractorsd. Force subcontractors to produce key components

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