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DENSO

1. How has DENSO's relationship with Toyota affected its international strategy? DENSO was/is part of Toyota's keiretsu. Toyota has a vertically integrated supply chain, which DENSO is part of. Toyota accounts for over half of DENSO's business. When Toyota expanded internationally, DENSO had to follow to supply Toyota's overseas plants. So Toyota initially set DENSO's international strategy However, DENSO started supplying other automakers with parts. Economies of scale are equally important for parts suppliers and assemblers. Toyota has also benefited from Denso's scale economy, which translates into lower costs, yet
better quality products. The contradiction is that Denso has attained market power and pricing autonomy by becoming an oligopoly, which has freed it from Toyota's grasp somewhat. It attains this bargaining power through customer diversification, with Toyota's consent. But, Toyota paved the way for DENSO by being the first in many new markets, such as North...

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Title: DENSO
Approximate word count: 609
Approximate pages: 3 (250 words per double-spaced page)

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