Question 2B: This question deals specifically with Strategic Cooperative Networks. These networks such as Dell are composed of multiple companies working together with a strategic center firm coordinating activity. At Dell, Dell does not manufacture anything instead they assemble components that customers have ordered for their computer build and coordinate the other firms the suppliers. Every network has a key capability or resource that is required to make the network function. Dell controls the network because they coordinate the other firms, have the ability to assemble the components and ship the computer out quickly.

Here's the question: Nike uses a strategic cooperative network and utilizes lower cost manufacturers in Southeast Asia to manufacture the shoes and send them back. What are the key capability(s) that Nike has to run the network? That is, what functions to they control the make the network work? How can Nike prevent their manufacturers in other countries from copying shoes and selling them under their own brand name?