Mitigation Strategy #1: Exercise Control Over the Manufacturing Process
Due to the nature of its leadership position in the ecosystem, Gore Inc. was uniquely able to regulate its
manufacturing partners carefully through negotiated terms. Gore-Tex has considerable control in the
supply chain because their product was so revolutionary and in high demand. They have been fanatical
about quality control, and are able to exert control over any manufacturer looking to license Gore-Tex
fabric. They have negotiated contracts that stipulate only certain factories can be used, that certain
equipment must be used in our factories, that certain quality checks must be done their way and pass their
standards, not ours. This is exactly the opposite of our typical supplier relationship.C