Nike, Inc. is an exceptional company, where researchers and observers can gain valuable insight into what it takes for a company to achieve sustainable competitive advantages. This American, multinational corporation, employs more than 33,000 people and have managed to continually succeed in a competitive market; being the largest seller of athletic apparel and footwear worldwide. This graphic shows vigorous competition among sportswear-makers. Nike, based in Oregon, is the world's leader, by dint of sales, visibility, high-profile athletes and its dominance in America. But Adidas, based in the southern German town of Herzogenaurach, is a strong number two. In this context a case study of Nike is presented and analyzed using the theoretical framework. Purpose A common objective of companies is to have long-term success, which can be achieved by having sustainable competitive advantage. The purpose of this essay is to study Nike sustainable competitive advantage by seeking to answer the research question, which is as follows: Drawing on the resources and capabilities theory, how does Nike generate sustainable competitive advantage? Furthermore, this will be done by exploring this topic through a case study that is focused on Nike. About Nike Although the sports footwear industry has become one of the most competitive markets in recent years, Nike has been on top of its league. It is clear that this company, which billed $ 24.1 in 2012 (its two largest competitors, Adidas and Puma, reported sales of $14 and $3 billion respectively.), has a range of capabilities that have been essential in the performance of their sustainable competitive advantage and that lie ahead of other companies in the same industry. We discuss which are the most important skills that have made Nike one of the world's most prominent sustainable corporations today. Theoretical Framework A description and explanation of the established resources and capabilities theory is provided in this section to guide the researcher of Nike case. Sustainable Competitive Advantage The topic of sustainable competitive advantage has been the dominant theme in the study of successful businesses for several years. In order to fully understand the business term "sustainable competitive advantage" it must first be broken down into its parts: competitive advantage and sustainable. The term "competitive advantage" is used when a firm is implementing a value creating strategy which is not simultaneously being implemented by any current or potential competitors. The concept simply describes the advantage a company has over other companies competing in the same market (Burn, 2008). This can refer to any innovation, product, service, patent, or anything else that differentiates the company in a positive way from the rest of the competition (Rijamampianina et al., 2003). The term competitive advantage is a static concept and has no time component associated with it (Chaharbaghi & Lynch, 1999). Businesses do operate in a dynamic environment, not a static one (Burns, 2008). Therefore, it is vital to introduce sustainability, which is a time component, to competitive advantage. Adding the word "sustainable" in front of competitive advantage is a way to describe a firm's lasting success in the market (Kandampully & Duddy, 1999). As Barney (1991) said: "A firm is said to have sustained competitive advantage when it is implementing a value-creating strategy not simultaneously being implemented by any or potential competitors and when these other firms are unable to duplicate the benefits of this strategy.. a competitive advantage is sustained only if it continues to exist after efforts to duplicate that advantage have ceased" ( p. 102 ). Resources and Capability Theory The theory of Resources and Capabilities allows us to explain the sustained competitive advantage and business growth. This theory has two principles. First, it mainly assumes that firms are heterogeneous because they have unique resources and capabilities and makes clear tha