How did the decision to bring out their own Nike shoes impact the company's relationship with their main supplier?

The decision to bring out their own Nike shoes led to a major conflict with their main supplier, Onitsuka. Onitsuka, the Japanese company that had been manufacturing Tiger shoes for Blue Ribbon, declared them in breach of contract. This was a potentially devastating blow for the company.

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Our us-against-the-world story gave us the strength not only to face many challenges over the years, but to take those challenges and turn them on their head. In 1972, we hit a major roadblock—our main Japanese supplier, Onitsuka, the company that had been manufacturing Tiger shoes for Blue Ribbon, declared us in breach of contract for bringing out our own Nike shoes. This was a potentially devastating blow. Could the company survive?

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Shoe Dog - Anecdotes From Nike

The iconic Nike sporting goods company started over 50 years ago as a ‘crazy idea’ in the mind of a young runner in Oregon. Shoe Dog is Phil Knight’s...

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