Toyota heavily uses a strategic network of vertical relationships. Toyota enables engineers in supplier firms to communicate easily with companies with whom Toyota has contracts for services. This results in the suppliers and the Toyota (the strategic center firm) being more
A) interdependent.
B) rivalrous.
C) creative.
D) complementary.

Question

Quizplus · Accepted Answer

Toyota's use of vertical relationships creates a high degree of interdependence between the supplier firms and Toyota. This means that each party relies heavily on the others to achieve success and stay profitable, which is a hallmark of a strategic network.

Toyota Heavily Uses a Strategic Network of Vertical Relationships