Never Let Your Supplier Own You
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By the early 1970s, Blue Ribbon Sports was Onitsuka Tiger's largest US distributor. It looked like success. Then Knight discovered that Onitsuka was secretly negotiating with other American distributors to replace him. He had built his entire business on one supplier's product. If Onitsuka cut him off, there was no business. Knight moved quickly. He sourced new manufacturers in Japan and Mexico. He created his own brand rather than distributing someone else's. The Swoosh was designed. The name Nike was chosen. He launched his own product line before Onitsuka could complete the move against him. This was the most dangerous moment in the company's history. It was also, Knight writes, the moment that saved it. Forced to create something of his own, he built something that could never be taken from him. The lesson is broader than shoes: any business built entirely on another company's product, platform, or goodwill is vulnerable. The company that controls what you sell controls your destiny.