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

Question

Quizplus · Accepted Answer

Toyota's strategic network of vertical relationships fosters interdependence between the suppliers and the strategic center firm. By enabling easier communication and collaboration, the different parties in this network are able to work together more closely towards a common goal. This interdependence helps to build stronger and more effective supply chains which benefits each of the companies involved.

Toyota Heavily Uses a Strategic Network of Vertical Relationships