In both th­ese ex­am­ples,

Finweek English Edition - - BUSINESS -

there are busi­nesses that look great on the out­side.

They’ve grown con­sis­tently (at least un­til last year); they’ve in­creased mar­ket share and prof­its. How­ever, in both cases they’re en­tirely de­pen­dent on one sin­gle sup­plier which ef­fec­tively con­trols how much profit they make.

There are no guar­an­tees in busi­ness, but there’s a high prob­a­bil­ity that serv­ing a sin­gle sup­plier puts your busi­ness at huge risk.

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